CARE Ratings Assigns ‘BBB- (Is)’ Rating to NRN Infrastructure and Development Limited

CARE Ratings Nepal Limited has assigned an issuer rating of ‘CARE-NP BBB- (Is)’ to NRN Infrastructure and Development Limited (NRN), indicating a moderate risk of safety regarding the timely servicing of financial obligations. The rating is supported by NRN's experienced management, solid capital structure, and association with a strong group in the hydropower sector.

However, the rating is constrained by the company's concentrated investments in less-liquid promoter shares and high dependence on the hydropower sector, which exposes it to hydrology and sector-specific risks. The company's ability to generate returns from its investments and adapt to market volatility and regulatory changes will be key factors in determining its future financial stability.