ICRA Nepal Limited has withdrawn the bank loan ratings assigned to Hotel Sabrina Limited, while placing the hotel’s outstanding issuer rating of [ICRANP-IR] B on notice of withdrawal. The rating action follows the company’s application to discontinue its ratings with ICRA Nepal and has been taken in accordance with the Credit Rating Regulations, 2011, and ICRA Nepal’s rating withdrawal policies.
The withdrawn ratings cover long-term loan limits of Rs. 1 billion and short-term loan limits of Rs. 250 million, bringing the total rated bank loan exposure to Rs. 1.25 billion. ICRA Nepal has withdrawn the long-term loan rating of [ICRANP] LB and the short-term loan rating of [ICRANP] A4.
Issuer Rating Remains at [ICRANP-IR] B
Although the issuer rating has not been immediately withdrawn, ICRA Nepal has placed Hotel Sabrina’s [ICRANP-IR] B rating on notice of withdrawal for a period of six months. The rating category indicates a high risk of default regarding the timely servicing of financial obligations.
ICRA Nepal clarified that the issuer rating represents an opinion on the general creditworthiness of Hotel Sabrina and is not a rating of any specific debt instrument. The rating agency also stated that it currently has no information indicating that the company’s credit risk has changed since its previous rating review.
Rating Withdrawal Follows Company’s Request
According to ICRA Nepal, Hotel Sabrina had requested the discontinuation of its ratings. Following the request, the rating agency placed the issuer rating on notice of withdrawal to comply with the timeline requirements under the Credit Rating Regulations, 2011. ICRA Nepal said the bank loan ratings were withdrawn in accordance with its established withdrawal policies and the applicable regulatory provisions.
The agency noted that it had been seeking comprehensive information from Hotel Sabrina as part of its regular rating-monitoring process and in accordance with the rating agreement between the two parties. However, after the company requested to discontinue the ratings, ICRA Nepal initiated the withdrawal process.
Six-Month Notice Period for Issuer Rating
Under the applicable withdrawal framework, Hotel Sabrina’s issuer rating will remain on notice of withdrawal for six months. The process allows the rating agency to comply with regulatory requirements before the rating is formally withdrawn. ICRA Nepal said its rating assessment is based on the availability of sufficient and relevant information about an entity. The agency reviews such information in accordance with the Credit Rating Regulations, 2011, and its own Withdrawal/Suspension Policy. The withdrawal of the ratings, therefore, does not by itself indicate that ICRA Nepal has identified a deterioration in Hotel Sabrina’s credit risk.
Hotel Sabrina Began Operations in 2019
Hotel Sabrina Limited was incorporated in August 2018 and began commercial operations in June 2019. The company operates a single-property hotel located on the outskirts of Kathmandu, approximately 9 kilometres from Tribhuvan International Airport. As of mid-July 2025, the hotel had an operational capacity of 60 keys, including 12 keys operated as service apartments. The property also had three banquet facilities, allowing it to serve both accommodation and events-related demand.
Nirajan Thapa Holds Nearly 49% Stake
Nirajan Thapa serves as the chairperson of Hotel Sabrina Limited and held a sizable stake of approximately 49% in the company as of July 8, 2025. The ownership structure and management profile form part of the company information considered in the rating process, along with its operating performance, financial position, and ability to meet financial obligations.
Rating Scale Indicates High Credit Risk
ICRA Nepal’s [ICRANP-IR] B rating falls within a category indicating a high risk of default in the timely servicing of financial obligations. The rating is intended to reflect the general creditworthiness of the issuer rather than the performance or security of a particular loan. ICRA Nepal also noted that rating symbols from [ICRANP-IR] AA through [ICRANP-IR] C may carry a “+” or “–” sign to indicate the relative position of an issuer within the respective rating category. Accordingly, [ICRANP-IR] B+ represents one notch higher than B, while [ICRANP-IR] B– represents one notch lower.
Rating Action Does Not Indicate a New Credit Risk Change
ICRA Nepal has specifically stated that it does not have information suggesting that Hotel Sabrina’s credit risk has changed since its last review. The latest action is primarily linked to the company’s request to discontinue the ratings and the resulting regulatory and policy requirements governing rating withdrawal. The agency’s decision covers the withdrawal of the company’s bank loan ratings and the placement of its issuer rating on notice of withdrawal, rather than a fresh downgrade based on a newly identified deterioration in credit quality.
