A credit rating is an assessment of a company’s ability to repay a loan, its financial condition, and its credibility.
There are two credit rating companies(agencies) in Nepal
What is ICRA Nepal?
ICRA Nepal Limited (ICRA Nepal) is Nepal’s first credit rating agency. ICRA Nepal Limited Company is owned by ICRA Limited Company of India. ICRA Nepal is a subsidiary of ICRA Limited India. The company was incorporated in Nepal on November 11, 2011. It was officially licensed by the Nepal Securities Board (SEBON) on October 3, 2012.
ICRA Nepal (India) also had an agreement with ICRA Limited (India) to provide various types of technical assistance and services, in which ICRA Limited (India) promised to assist ICRA Nepal in the areas of analytical software, research, training, and technical and analytical skills required in the rating process. With ICRA Nepal was established.
ICRA LIMITED (India), the parent company, was established in 1991 as an independent and business investment information and credit rating agency by leading / investment institutions, commercial banks, and financial services companies. ICRA and its subsidiaries have formed a single ICRA Group of Companies (ICRA Group). ICRA is a public limited company. ICRA Limited’s shares are listed on India’s National Stock Exchange and Bombay Stock Exchange.
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What is care rating Nepal limited(CRNL)
Care Rating Nepal Limited (CRNL) is based in Kathmandu, Nepal. It is the second credit rating agency in Nepal to be licensed by the Nepal Securities Board (SEBON) on November 16, 2017, which is a subsidiary of CareEdge rating or Care rating limited India. care rating Nepal Limited has been providing credit rating and related services in the geography of Nepal.
As of December 01, 2017, the major shareholders of CRNL are 51% owned by Care Rating Limited (India). Similarly, Vishal Group Limited owns 10%, Emerging Nepal Limited owns 10%, Arpit Agarwal owns 9%, and Global IME Bank, Nepal Reinsurance Company Limited, Prudential Insurance Company Limited, and Life Insurance Corporation Nepal Limited 5/5 % respectively.
Care rating was known as limited (previously credit analysis and research limited). He has a track record of nearly three decades in providing high-quality credit ratings and related services in India. Which was established in April 1993.
Before the arrival of Care Rating Nepal, only ICRA Limited was working on the rating of the company. With the establishment of Care Rating Nepal, two credit ratings have been added in Nepal. ICRA Nepal and Care Rating Nepal provide a variety of indicators for credit rating using a variety of basic principles of a company’s ability to repay its debts, as well as facilitating investors to choose a high-risk company. This rating is valid only for a certain period.
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