Fitch Ratings has affirmed Kerala Infrastructure Investment Fund Board's (KIIFB) long-term foreign- and local-currency issuer default ratings at BB.
The outlook is stable, it said.
Fitch has also affirmed KIIFB's Rs 5,000 crore medium-term note programme and the Rs 2,150 crore 9.723 per cent senior secured notes due 2024 under the programme at BB.
The notes issued by KIIFB directly are unconditionally and irrevocably guaranteed by state of Kerala acting through the Finance Department of Kerala.
KIIFB is a statutory body set up by the Government of Kerala (GoK) under the Kerala Infrastructure Investment Fund Act 1999. It has a special legal status whereby its liabilities are automatically transferred to the state in a default.
KIIFB follows the GoK's plan to finance and implement various infrastructure projects and its board consists of existing and former government officers as well as independent members.
In addition, a fund trustee and advisory commission acts as KIIFB's trustee to ensure there is no diversion of funds.
Fitch's assessment reflects KIIFB's designated role as an exclusive financing vehicle for critical infrastructure-development projects.
The projects span various public sectors, including transportation and urban infrastructure development, power generation, agriculture, education and healthcare.
The development of these sectors is crucial to improve the state's living standards and for its sustainable economic growth.