S&P affirms Kerala's 'BB-/B' rating, gives outlook stable to state

Deficits resulting from spending on socio-economic programmes constrain ratings for the state: Agency

Global rating agency Standard and Poor’s (S&P) has affirmed 'BB-' long-term and 'B' short-term issuer credit ratings for Kerala.

The outlook remains stable on the view that Kerala will continue to have strong access to domestic capital markets and liquidity support from the central government and the Reserve Bank of India, said S&P in a statement.,

It affirmed 'BB-/B' ratings on Kerala Infrastructure Investment Fund Board (KIIFB), saying the outlook is stable.  

Kerala's weak fiscal metrics will likely improve gradually as its economy recovers from the impact of Covid-19. The state's fragile recovery will keep deficits in its after-capital account at more than