ICRA Nepal rates rupee denominated debt instruments issued by commercial banks, financial institutions, non-banking finance companies, public sector undertakings, and manufacturing and service companies, among others. Another key product offered is Issuer Rating Service. ICRA Nepal’s Issuer Ratings seek to provide an opinion on the general creditworthiness of the rated entities in relation to their senior unsecured obligations. ICRA Nepal’s Issuer Ratings are not specific to any particular debt instrument issued by the rated entities. In an increasingly globalising environment, Issuer Ratings can be of immense help to organisations in negotiating with prospective lenders, contractors, consultants, counter-parties, collaborators, vendors, creditors and other stakeholders who need to form an opinion about the overall credit quality of the company.
ICRA Nepal is also offering other products, including Bank Loan/Line of Credit Rating and Rating of Claims Paying Ability of Insurance Companies. The other services include Corporate Governance Rating, Stakeholder Value and Governance Rating, and Credit Risk Rating of Debt Mutual Funds.
ICRA Nepal considers all relevant factors that have a bearing on the future cash generation of the issuer. These factors include: industry characteristics, competitive position of the issuer, operating efficiency, management quality, commitment to new projects and other associate companies, and funding policies of the issuer. A detailed analysis of the past financial statements is made to assess performance under “real world” business dynamics. Estimates of future earnings under various sensitivity scenarios are drawn up and evaluated against the claims and obligations that require servicing over the tenure of the instrument being rated. Primarily, it is the relative comfort level on the issuer’s cash flows to service obligations that determines the Ratings.