KIIFB maintains BB rating during COVID-19 era

KIIFB has made gains in the face of declining credit ratings from world nations and international financial institutions in terms of financial strength. Fitch Group, one of the three largest credit rating agencies in the world, has maintained KIIFB’s BB rating.

Fitch says KIIFB was able to make such an achievement even during this crisis. KIIFB is a legally privileged entity. Another factor was the government’s guarantee of repayment, including interest, on loans taken by KIIFB.

Through KIIFB, the State Government was implementing the infrastructure required to raise the living standards of the State and enable sustainable economic development. Fitch points out that KIIFB is a special financial institution for this purpose and that it is a positive factor in maintaining the rating.

Earlier, another leading credit rating agency, Standard & Poor’s, had lowered Kerala’s rating from BB (stable outlook) to BB- (stable outlook). Naturally, KIIFB rating was changed to BB- (stable outlook). Leading rating agencies, including Fitch and S&P, maintained confidence in KIIFB even as most financial institutions and countries declined in credit ratings during the COVID era.