ICRA Nepal Reaffirms Issuer Rating of Chandragiri Hills Limited at [ICRANP-IR] BB+

ICRA Nepal Limited, the premier credit rating agency of the country, has reaffirmed the issuer rating of Chandragiri Hills Limited at [ICRANP-IR] BB+ (pronounced ICRA NP issuer rating double B plus). This rating indicates that the company is considered to have a moderate risk of default in regard to the timely servicing of its financial obligations.

Moderate Default Risk

According to ICRA Nepal, the BB+ rating falls under the speculative grade but is still above average within that category, showing that the company has some capacity to meet its financial commitments. However, it is also subject to ongoing uncertainties that may affect its financial performance, especially in a dynamic business environment such as tourism and hospitality, which Chandragiri Hills primarily operates in.

It is important to note that issuer ratings represent an agency’s opinion on the general creditworthiness of the rated entity and are not linked to any specific financial instrument. The reaffirmation of the rating reflects it’s assessment of Chandragiri Hills Limited’s business profile, operating performance, and financial metrics in relation to industry benchmarks and peer comparisons.

Understanding the Rating Notation

In this rating system, the issuer rating category ranges from [ICRANP-IR] AA to [ICRANP-IR] C. Within these categories, the addition of a plus (+) or minus (–) sign further refines the position of a rating. For example, a [ICRANP-IR] BB+ rating is considered one notch higher than [ICRANP-IR] BB and one notch lower than [ICRANP-IR] BBB-. This gradation helps investors and stakeholders better understand the credit standing of the company relative to others in the same rating bracket.

Chandragiri Hills Limited, a key player in Nepal’s tourism infrastructure development, is known for operating one of the most prominent cable car services in the country, along with other facilities like hotels, restaurants, and recreational attractions. The reaffirmation of the BB+ rating may reflect a relatively stable financial outlook amid operational challenges and market fluctuations.

Importance of Rating to Investors and Lenders

It’s rating update serves as a valuable indicator for investors, lenders, and market participants seeking insights into the company’s credit risk and financial discipline. However, stakeholders are reminded that credit ratings are based on available information and analytical judgment, and should not be construed as investment advice or assurance of future performance.