By Karuna Thapa
Kathmandu, February 27
The Nepal Electricity Authority, which is completely controlled by the government, has been
given a credit rating of ‘Double-A Plus.’ The credit rating of NEA has been assigned an ICRA NP Double-A Plus credit rating by ICRA Nepal Limited.
Obtaining a Double-A Plus rating indicates that the company has a strong ability to meet its
financial and monetary responsibilities on schedule. Financial transactions with a Double-A Plus rated institution to offer a very low risk of debt repayment.
Credit ratings are used to assess and express opinions on an individual’s or an organization’s creditworthiness. As a straightforward and accessible indicator of the inherent risks, it provides opinions on the institution’s capacity to service its financial commitments.
The financial situation of NEA, assets, business and financial risks, managerial capacity, and
internal and external environmental factors affecting operational effectiveness were all
examined by ICRA Nepal. The same analysis is used to determine NEA’s credit rating.
The NEA has a double-A plus credit rating among public bodies, according to NEA Executive
Director Kulman Ghising, indicating a high level of safe ability to meet financial responsibilities.
According to Ghising, the NEA has borrowed government guarantees from multilateral
development partners including the World Bank and the Asian Development Bank, and its
credit rating shows that its operations with the NEA are secure in every way.
”Long Term Power Purchase Agreements (PPAs) have been signed with hydroelectric projects to be built by local and global investors,” stated Executive Director Ghising. There will be some promotion as well.” The credit rating shows that NEA has a strong financial capacity to fund such projects and that there is no danger of investment. This will provide investors with a sense of security, as well as encourage investment in the hydropower sector.
It was declared that NEA would establish the potential to mobilize capital on corporate
guarantee while the government was implementing the new project through the current fiscal year’s budget.
ICRA Nepal is a completely owned subsidiary of the NEA government, having a monopoly on power transmission, distribution, and the procurement and sale of electricity both within and beyond the nation. It is also a strategic government entity. It has been brought up.
