...Fitch Ratings expects the sector to face further difficulties in 2020 as participants address issues arising from legacy structures and divisions, that in many cases are no longer core, but absorb both capital and management focus. We continue to see margin pressure, which is often the result of higher bidding competition; this increasingly manifests in a more aggressive approach to pre- payments, resulting in a growing reliance on external funding and weaker leverage metrics. Increased exposure to fixed-rate contracts makes contract management important and an industry challenge where tariffs and Brexit uncertainties also drive cost increases and volatility....
