Kathmandu. Credit rating agency ICRA Nepal has withdrawn the issuer rating of Himalayan Reinsurance Limited, a private sector-promoted reinsurance company.
According to a press release issued by ICRA Nepal, the rating has been withdrawn following a request by Himalayan Re Insurance to withdraw the rating. Himalayan Reinsurance received ‘ICRANP IR A’ in the issuer rating released by ICRA Nepal a year ago in July 2024.
The reinsurance company had got an issuer rating for the purpose of issuing percentage right shares to raise insufficient amount to maintain the minimum paid-up capital set by the Nepal Insurance Authority.
As per the provisions of the securities regulations, a company issuing public shares to raise capital must undergo a financial strength assessment through a credit rating agency before issuing such an issue. What is the financial condition of the concerned company with such an assessment? Can you meet the pre-determined financial obligations within the stipulated time or not? It makes it easier for the general public to learn about business choices and prospects.
The Insurance Regulatory Nepal Insurance Authority (NEA) had directed Himalayan Reinsurance to suspend the process related to the right shares, saying that it had not taken prior approval regarding the issue of right shares. The process of issuing right shares has come to a halt following the directive of the NRA.
According to ICRA Nepal, based on the request of Himalayan Reinsurance, the evaluation has been withdrawn as per the Credit Assessment Rules, 2011.
