ICRA Nepal gives grade 4 plus credit rating to Century’s IPO

ShareSansar, December 8:

ICRA Nepal has assigned an IPO Grade 4 plus to Century Commercial Bank Limited,  indicating below average fundamentals to the proposed Initial Public Offerings (IPO) amounting Rs 92 crore.

ICRA Nepal assigns IPO grading on a scale of IPO Grade 1 through IPO Grade 5, with Grade 1 indicating strong fundamentals and Grade 5 indicating poor fundamentals.

For the Grading categories 2, 3 and 4, the sign of + (plus) appended to the Grading symbols indicate their relative position within the Grading categories concerned.
Thus, the Grading of 2+, 3+ and 4+ are one notch higher than 2, 3, and 4, respectively.

However, it may also be noted that none of the BFIs or any companies applying for the IPO have received more than Grade 4 credit rating from ICRA Nepal.

Century Commercial Bank official told ShareSansar that they are not bothered by the credit rating because the bank was a new one, which has not given any dividend so far.

“A few of the recent IPOs of Sanima Mai and other listed companies were rated better than this because they are operating for quite some time now and are providing dividends to the shareholders unlike us, a relative new company,” Century officials added.

They added that now that they have got the credit rating they will gear up to issue the IPO.

SEBON has been processing the IPO over the past few weeks.