Fitch Group-led India Ratings and Research has downgraded its outlook on the country's construction sector from 'stable' to 'negative' for the year 2013.
The factors responsible for the negative outlook of the domestic construction companies include challenges faced by such companies in execution of projects such as delays in environment clearances, land acquisitions and other issues, the ratings agency said in its report.
The report added that the liquidity and financial leverage have been "adversely affected" in many construction companies that have ventured into build-operate-transfer projects due to challenges in raising equity.
