The capital market regulator — Securities Board of Nepal (Sebon) — has granted Letter of Intent (LoI) to ICRA to undertake the process to start credit rating agency.
Icra will have 55 per cent stake in the rating agency while the remaining stake will be held by Credit Information Bureau, Himalayan Infrastructure Fund and some Nepali banks, according to the Sebon. "The rating agency needs to complete necessary undertaking to obtain the operating licence."
The recently endorsed Credit Rating Agency Regulation-2068 states that the domestic credit rating agency needs to have minimum of 25 per cent stake of foreign credit rating agency.
Moody's Investor Service — an international credit rating agency — holds the majority stake in ICRA that also has rating agencies in Indonesia and Sri Lanka.
The companies planning to issue ordinary shares, bonds, debentures, preference shares exceeding Rs 30 million in value have to get themselves rated by a rating agency that also have to continue rating once rated companies for next two consecutive years as well.