Munal and Mayur Wellness Retreat Hotel Private Limited (MMWR), which is developing a medical wellness resort in Chitwan under the brand name “Munal & Mayur Medical Wellness Retreat,” has had the ratings assigned to its Rs. 550 million bank facilities withdrawn by Infomerics Credit Rating Nepal Limited (Infomerics Nepal).
The company was incorporated on September 4, 2019, with the objective of constructing and operating a wellness-focused resort in Chitwan, Nepal. The project has been designed as a 36-key resort, including seven villa units, positioning the property within Nepal’s emerging wellness and hospitality tourism segment.
Resort Began Partial Operations in June 2024
According to Infomerics Nepal, the company commenced partial commercial operations in June 2024, initially operating 26 keys of the planned 36-key resort. The development is being positioned under the Munal & Mayur Medical Wellness Retreat brand, with its concept focused on the growing medical wellness and retreat market. As of mid-July 2024, Lakpa Dhundup Lama held approximately 75% of the company’s shareholding, making him the majority shareholder of MMWR.
The resort is part of the expanding hospitality infrastructure in Chitwan, a destination known for its tourism attractions and established hospitality market. The addition of a wellness-oriented property is aimed at serving visitors seeking retreat, wellness and related hospitality experiences.
Infomerics Withdraws Rs. 550 Million Bank Facility Ratings
Infomerics Nepal has withdrawn the ratings assigned to MMWR’s Rs. 550 million bank facilities with immediate effect. The withdrawn facilities comprise Rs. 543.70 million in long-term bank facilities and Rs. 6.30 million in short-term bank facilities. Prior to the withdrawal, the combined long-term and short-term facilities carried a rating of IRN B+/A4 [INC], categorized as Single B Plus/A Four, Issuer Not Cooperating. The rating action covers the entire Rs. 550 million of facilities previously rated by Infomerics Nepal.
Continued Non-Cooperation Leads to Rating Withdrawal
According to Infomerics Nepal, the rating withdrawal was undertaken in accordance with the guidelines of the Securities Board of Nepal (SEBON) following continued non-cooperation from MMWR during the rating surveillance process.
The rating agency said the company did not cooperate with the surveillance process despite multiple follow-ups. As a result, Infomerics Nepal was unable to obtain sufficient information required to conduct an updated assessment of the company’s credit profile and financial position.
Before the withdrawal, the ratings had been placed under the Issuer Not Cooperating category along with a notice of withdrawal for six months. However, the company continued to remain non-cooperative throughout the specified period, according to the rating agency. Consequently, Infomerics Nepal proceeded with the withdrawal of the ratings.
Key Rating Drivers and Financial Indicators Not Updated
Infomerics Nepal said the continued lack of adequate information prevented it from capturing and updating the company’s key rating drivers, rating sensitivities and key financial indicators. This means the latest rating withdrawal should be understood in the context of the surveillance process rather than as a new credit assessment based on updated financial information. The rating agency was unable to evaluate the company’s latest financial performance, debt-servicing position, operating performance and other relevant credit factors because the necessary information was not made available for surveillance.
Standalone Approach Used for Assessment
Infomerics Nepal had followed a standalone analytical approach while assessing MMWR. The rating assessment was undertaken under its Corporate Credit Rating Methodology and relevant Withdrawal Policy. The agency’s latest action therefore removes the previously assigned IRN B+/A4 [INC] ratings from the company’s Rs. 550 million long-term and short-term bank facilities.
Wellness Hospitality Project Remains in Development Phase
MMWR’s project represents an investment in Nepal’s growing wellness hospitality segment, with the company having planned a 36-key property comprising conventional accommodation and villa units. The resort began partial operations in June 2024 with 26 keys, while the project was initially established to operate as a medical wellness retreat in Chitwan.
However, following the rating withdrawal, Infomerics Nepal has not provided an updated assessment of the company’s current financial condition, operating performance or credit metrics due to the lack of adequate information from the company. The withdrawal is effective immediately and covers the full Rs. 550 million of bank facilities previously rated by Infomerics Nepal.
