Infomerics Puts Multiple Rated Entities on Watch Following September Protests

The wave of protests that swept across Nepal in early September has left more than just a political aftershock. As demonstrations against the ruling government escalated into violence and property damage, businesses across the country found themselves counting losses — and credit rating agencies are now warning of lasting financial tremors.

In its latest assessment, Infomerics Credit Rating Nepal Limited has placed a string of Nepali companies — from insurance firms and hotels to aviation and education enterprises — on “Watch with Negative Implications”, signaling rising uncertainty over their short-term stability and recovery prospects.

The decision follows what Infomerics described as a “significant political transition” between September 8 and 12, 2025, when widespread protests culminated in a change of national leadership. The unrest caused damage to public infrastructure, disrupted private sector operations, and forced several businesses to halt activity entirely.

According to Infomerics, the developments could weaken operating performance and delay recovery in firms already under pressure from sluggish demand and tight liquidity conditions. The agency said it will continue to monitor the evolving situation and review its ratings as more clarity emerges on policy direction and economic stability under the new government.

Among the companies directly hit were Professional Educators Limited, Global College of Technology, and Jagdamba Hospitality Group Limited — all of which reported cases of arson and vandalism at their premises. For some, buildings and machinery were destroyed, forcing a temporary shutdown of operations.

Infomerics noted that while these firms are insured, uncertainties remain over the timing and amount of insurance recoveries. “The quantum, timing, and extent of insurance recoveries remain uncertain,” the agency stated, emphasizing that the true scale of financial impact will depend on how quickly normal business operations can resume.

The agency reaffirmed existing ratings for these firms but placed them under watch, reflecting potential deterioration in financial profiles until clarity emerges.

Entity	Last Rated Amount (NPR Mn)	Rating Outstanding	Rating Action
Professional Educators Limited	1,500.00	IRN BB+/A4+	IRN BB+/A4+@; reaffirmed & placed on 'Watch with negative implications'
Global College of Technology Pvt. Ltd.	700.00	IRN B+	IRN B+@; reaffirmed & placed on 'Watch with negative implications'
Jagdamba Hospitality Group Limited	5,300.00	IRN BB/A4	IRN BB/A4@; reaffirmed & placed on 'Watch with negative implications'

With the September 8-9 protests causing extensive damage to infrastructure across multiple sectors, including government offices, hotels, commercial establishments, educational institutions, and shopping complexes, a sharp increase in insurance claims has been seen within the general insurance sector. According to preliminary data published by the Nepal Insurance Authority (NIA), the regulatory body for insurance companies in Nepal, reported claims had reached over Rs 23 billion.

The surge in claims, coupled with uncertainties over reinsurance recoveries, has led Infomerics to place four general insurers — Neco Insurance Limited, Prabhu Insurance Limited, Nepal Insurance Company Limited, and Trust Micro Insurance Company Limited — under ‘Watch with Negative Implications’.

Entity	Rating Outstanding	Rating Action
Neco Insurance Limited	IRN A+ (Is)	IRN A+ (Is) @: reaffirmed & placed on 'Watch with negative implications'
Prabhu Insurance Limited	IRN BBB+ (Is)	IRN BBB+ (Is) @: reaffirmed & placed on 'Watch with negative implications'
Nepal Insurance Company Limited	IRN A- (Is)	IRN A- (Is) @: reaffirmed & placed on 'Watch with negative implications'
Trust Micro Insurance Company Limited	IRN BB- (Is)	IRN BB- (Is) @: reaffirmed & placed on 'Watch with negative implications'

Infomerics warned that companies in the hospitality and aviation segments — especially heli-service operators and resort hotels — are facing mounting financial stress as tourist arrivals drop and bookings are cancelled.

The agency identified Air Dynasty Heli Services and Manang Air among the aviation firms under pressure, both now placed on negative watch.

In the hospitality space, a wide spectrum of hotels — from The Massif Hotel in Mustang to Thamel Plaza Hotel and Suites, Bhairahawa Garden Resort, and Hotel Lhasa International — have seen their ratings reaffirmed but flagged for potential downgrade. Many of these establishments are contending with cancelled bookings, lower occupancy, and uncertain recovery timelines.

Entity	Last Rated Amount (NPR Mn)	Rating Outstanding	Rating Action
Air Dynasty Heli Services Pvt. Ltd.	780.57	IRN BBB-/A3	IRN BBB-/A3 @; reaffirmed & placed on 'Watch with negative implications'
Manang Air Pvt. Ltd.	730.12	IRN BB-/A4	IRN BB-/A4 @; reaffirmed & placed on 'Watch with negative implications'

Hospitality Sector

Entity	Last Rated Amount (NPR Mn)	Rating Outstanding	Rating Action
Thamel Plaza Hotel and Suites Ltd.	750.00	IRN BB/A4	IRN BB/A4 @; reaffirmed & placed on 'Watch with negative implications'
	—	IRN BB (Is)	IRN BB (Is) @; reaffirmed & placed on 'Watch with negative implications'
Bhairahawa Garden Resort Pvt. Ltd.	1,020.00	IRN BB-/A4	IRN BB-/A4 @; reaffirmed & placed on 'Watch with negative implications'
The Metropolitan Hotel Ltd.	1,979.05	IRN BB/A4	IRN BB/A4 @; reaffirmed & placed on 'Watch with negative implications'
Swornim Hotel Ltd.	971.08	IRN BB+	IRN BB+ @; reaffirmed & placed on 'Watch with negative implications'
	—	IRN BB+ (Is)	IRN BB+ (Is) @; reaffirmed & placed on 'Watch with negative implications'
Manigram Bishram Batika Pvt. Ltd.	650.00	IRN BB-/A4	IRN BB-/A4 @; reaffirmed & placed on 'Watch with negative implications'
Hotel Lhasa International Private Limited	2,091.24	IRN BB/A4	IRN BB/A4 @; reaffirmed & placed on ‘Watch with negative implications’
Munal and Mayur Wellness Retreat Hotel Private Limited	550.00	IRN BB-/A4	IRN BB-/A4 @; reaffirmed & placed on ‘Watch with negative implications’
Siddhartha International Hotel Limited	1,220.00	IRN B+/A4	IRN B+/A4 @; reaffirmed & placed on ‘Watch with negative implications’
Tayo Eco Resort Private Limited	542.86	IRN BB-/A4	IRN BB-/A4 @; reaffirmed & placed on ‘Watch with negative implications’
The Massif Hotel Private Limited	4,127.00	IRN B+	IRN B+ @; reaffirmed & placed on ‘Watch with negative implications’
Hotel Forest Inn Private Limited	2,162.16	IRN BB-/A4	IRN BB-/A4 @; reaffirmed & placed on ‘Watch with negative implications’
	NA	IRN BB- (Is)	IRN BB- (Is) @; reaffirmed & placed on ‘Watch with negative implications’
Mountain Glory Limited	NA	IRN BB- (Is)	IRN BB- (Is) @; reaffirmed & placed on ‘Watch with negative implications’