Fitch: Stable view for India construction

Fitch Ratings said in a new report that it expects the 2010 outlook for the Indian construction industry to be stable, though a significant increase in asset ownership through build, own, operate and transfer (BOOT) projects may lead to some negative rating pressure.

The agency revenue growth will likely to remain strong for construction companies given comfortable order-book positions and expected increases in new orders, Fitch said.

The stability also will be driven by the trend for many companies to move away from fixed-price contracts to ones that incorporate price escalations, the agency said.

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