ICRA Nepal Upgrades Ratings of Three Hydropower Firms, Signals Gradual Credit Improvement

ICRA Nepal Limited has upgraded the issuer rating of Myagdi Hydropower Limited (MHL) to [ICRANP-IR] B from [ICRANP-IR] D, indicating an improvement in its overall credit profile. Despite the upgrade, the rating still reflects a high risk of default in meeting financial obligations on time. The issuer rating represents an opinion on the company’s general creditworthiness, not on any specific debt instrument. Within rating categories from AA to C, plus (+) or minus (–) signs may be used to show relative standing, for example, B+ is one notch higher than B, while B– is one notch lower.

Similarly, ICRA Nepal Limited has upgraded the issuer rating of Khani Khola Hydropower Company Limited (KKHCL) to [ICRANP-IR] B+ from [ICRANP-IR] B and removed it from the status of “Watch with Developing Implications.” The new rating indicates some improvement in credit standing, but the company is still viewed as having a high risk of default in meeting its financial obligations on time. The rating reflects the firm’s overall creditworthiness rather than any specific debt instrument. Within the rating scale (AA to C), plus (+) or minus (–) symbols show relative position, with B+ ranked one notch higher than B and B– one notch lower.

Also, ICRA Nepal Limited has upgraded the issuer rating of Chhyangdi Hydropower Limited (CHL) to [ICRANP-IR] BB- from [ICRANP-IR] B-, indicating an improvement in its credit profile. With this rating, the company is considered to have a moderate risk of default in servicing its financial obligations on time. The rating represents an opinion on the entity’s overall creditworthiness rather than any specific debt instrument. Within the rating scale (AA to C), plus (+) or minus (–) signs denote relative standing, with BB+ one notch above BB and BB- one notch below BB.