THE CORRUPTION plagued  Brazilian construction company  Norberto Odebrecht, which has been favored with contracts totaling  $9 billion by successive  Panama governments, has suffered a new setback after being  downgraded by the ratings agency Standard & Poor's (S&P).

The assigned note (BB) reflects the view of the rating agency about the growing financial constraints due to corruption investigations into the company.

The rating measures the ability of the company to meet its future obligations. The credit rating was downgraded from BB + to BB with a negative outlook.

The agency considers that the business conditions of the company have deteriorated due to increased reputational risks.

"As a result, we perceive less financial flexibility of the company to deal with the contingencies arising from corruption investigations," the agency said.

Odebrecht is the largest construction company in Latin America and a prime contractor for Panama.

The conglomerate is under investigation in Brazil within the framework of the Lava Jato (Car Wash) operation which threatens to bring  down the Brazilian Government.