Infomerics , an Indian subsidiary receives license as Nepal’s Third Credit Rating agency
Infomerics Credit Rating Nepal has been granted a license to conduct business in the area of corporate credit ratings.
This is the third company of its kind to be granted permission by the government to operate in the domestic market. Currently, the segment is served by ICRA Nepal and CARE Ratings Nepal.
Nepal-based Infomerics Credit Rating is a subsidiary of India-based Infomerics Valuation and Rating Private Limited. According to the Securities Board of Nepal, the company’s paid-up capital is Rs 100 million (Sebon).
Credit rating firms assess a company’s financial strength and ability to repay loans. Investors make investment decisions based on credit rating agencies’ ratings and other information.
According to Nepalese legislation, every company intending to conduct an initial public offering (IPO) or issue rights shares valued more than Rs 30 million must get a credit score. Additionally, they must obtain a credit score while creating another public concern.
Prior to issuing debentures and bonds, preference shares, ordinary shares at a premium, and other instruments, businesses must get a credit rating. Nepal Rastra Bank has maintained its policy of requiring any company obtaining loans in excess of Rs 500 million to obtain a credit rating first.
A credit score assists prospective clients in determining whether or not to conduct business with a particular organization. Banks and financial organizations place a premium on the credit worthiness of businesses and individuals when making loans.