KATHMANDU, March 22: Infomerics Credit Rating Nepal has received an operating license to work in credit ratings of the companies.
This is the third company of its type that received the government’s approval to work in the domestic market. As of now, ICRA Nepal and CARE Ratings Nepal have been operating in the segment.
NEA again receives 'Double A Plus' credit rating
Infomerics Credit Rating Nepal is a subsidiary of Infomerics Valuation and Rating Private Limited, India. The company’s paid-up capital is Rs 100 million, according to the Securities Board of Nepal (Sebon).
Credit rating agencies measure the financial strength of a company and its ability to repay loans. Potential investors rely on the rating and other information provided by credit rating agencies to make investment decisions.
Nepal’s laws require any company planning to make an initial public offering (IPO) or issue rights shares worth more than Rs 30 million to obtain a credit score. They also need to get a credit score while making a further public issue.
Companies need to get a credit score before issuing debentures and bonds, preference shares, ordinary shares at a premium and other instruments. Nepal Rastra Bank has maintained the rule that any company receiving loans of over Rs 500 million also needs to get its credit rating first.
A credit score helps possible clients to decide whether or not to conduct transactions with the company concerned. Companies and individuals with high ratings are trusted by banks and financial institutions while issuing loans.
