Tag: Kerala rating revised to stable from negative

Kerala, which is frequently criticised for poor financial management, has received a fillip with the rating agency Fitch revising the State’s long-term financial outlook to ‘stable’ from ‘negative’. Affirming the ratings at BB, the rating agency said: “The state’s economic expansion should adequately offset the increased debt burden, resulting in steady debt ratios”.“We expect sustained economic growth to support the State’s steady fiscal performance to the fiscal year ending March 2027 (FY27), although the State’s broad expenditure responsibilities and large infrastructure investment will lead to ongoing fiscal deficits and...