The rating of the bonds was also downgraded to 'B with negative outlook by India Ratings. A rating below 'BBB' is categorised as speculative grade.
The entity was to be bifurcated after Telangana was carved out of Andhra Pradesh.
APSFC's Telangana division is facing hurdles over non-resolution of asset division between the two states, and liquidity problems that have emerged since 2017, officials said.
"At the board level, the issue of bifurcation has been decided upon, but it is yet to get the Centre's nod," Shrivastava said.
Due to this, the bonds do not carry the usual state guarantee, too, she said.
Of the total Rs 6.41 billion, only Rs 1.21 billion is maturing on December 29, 2019 and the remaining in 2022 and 2023.
However, despite the rating downgrade, some analysts were of the view that APSFC will not default, as it is more of a "procedural" issue.
APSFC's core capital risk-weighted adequacy ratio has gradually increased since the 2013-14 fiscal (FY18: 24.21 per cent, FY17: 20.83 per cent), driven by growing net worth and robust bottomline.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)