CARE Ratings Nepal assigns CARE-NP B + and CARE-NP A4 to long term and short term bank facilities of Real Steels

CARE Ratings Nepal Limited (CRNL) has assigned Rating of ‘CARE-NP B +’ to the long term bank facilities and ‘CARE-NP A4’ to the short term bank facilities of Real Steels Private Limited (RSPL).

The ratings assigned to the bank facilities of RSPL are constrained by funding risk of the project as the financial closure is yet to be achieved, expected exposure to risk of volatile interest rates, project implementation & stabilization risk, raw material price volatility risk & foreign exchange fluctuation risk. The ratings also factor in presence in highly fragmented & competitive nature of steel industry.

The ratings, however, derive strength from experienced promoters & management in the related field, demand of steels products in the country, locational advantage & scope of export and product diversification.

Timely financial closure of the project, completion of the project within the cost estimates and satisfactory operations thereafter are the key rating sensitivities.