CARE Ratings Nepal Commences Operation

December 22: CARE Ratings Nepal has commenced operations. The start was marked with an inagural ceremony held in the capital on December 21. Chairman of the Securities Board of Nepal (SEBON) Dr Rewat Bahadur Karki inaugurated the operations of the new credit rating agency.

CARE Ratings Nepal is a joint venture of CARE Ratings Limited, India (formerly Credit Analysis and Research Ltd) and Nepali companies, namely Vishal Group, Global IME Bank, Emerging Nepal Limited, Nepal Reinsurance Company, Prudential Insurance Company and Life Insurance Corporation. It received credit rating license from SEBON on November 16 to operate in Nepal.

Issuing a press statement, CARE Ratings Nepal said it will provide ratings for various instruments such as bonds, debentures, commercial paper, bank deposits, structured finance and other debt instruments besides grading initial public offer (IPO), follow-on public offer (FPO), rights issue and ratings for the bank facilities in Nepal.

The company will also cover rating of issuers including insurance companies, asset management companies and SMEs.

Addressing the inaugural ceremony, SEBON Chairman Dr Karki said that the board has recently granted the license to the new rating agency based on the market potential and to ensure more transparency in the financial market.