ICRA delays the rating procedure: blamed Insurance companies

Sharesansar, December 14:

Insurance companies have blamed credit rating company ICRA Nepal for taking additional time for rating procedure, causing them to delay right shares issuance.

"There is only one rating company and it’s too running with insufficient number of staffs, causing us to postpone issuance period", said a source. But ICRA Nepal has denied the charge made by insurance companies.  

"I don’t see any problem within us, instead they are to be blamed",insisted Deepak Kafle, Chief executive Officer of ICRA Nepal.  Insurance companies aren’t providing require documents to finalize the rating process, Kafle further added.  

According to Kafle, if there is excessive work load on their company, they usually transfer it to the parent company -ICRA India. In his views, Bank and financial institutions are more co-operative than insurance companies.

United insurance, Neco insurance, Premier insurance and Everest insurance had approached for the rating procedure about 45 days ago, according to the source. The regulator Securities board of Nepal had made compulsory to get rated for issue amounting more than 300 million.

United, Everest, Neco and premier are about to issue:  1:1.5, 1:1.1, 1:0.84 and 1:1.15 ratio right shares respectively.