ICRA Nepal rates long term and short term credit portfolio of Simrik Air indicating moderate risk of default and very high credit risk respectively

ICRA Nepal Limited has assigned following ratings to aggregate borrowing of Rs. 58.69 crore and USD 63.3 lakh of Simrik Air Pvt. Ltd.

1. Long Term Loan: ICRA Nepal has assigned [ICRANP] LBB- (Pronounced as ICRA NP L Double B Minus) Rating to the Long-Term Borrowing of Rs 46.52 crore and USD 9.7 lakh. Borrowing with this rating are considered to have moderate risk of default regarding timely servicing of financial obligation.
2. Short Term Loan: ICRA Nepal has assigned [ICRANP] A4(Pronounced as ICRA NP A Four) Rating to Short-Term Borrowing of Rs 12.16  crore and USD 53.6 lakh. Instruments with this rating are considered to have minimal degree of safety regarding timely payment of financial obligations. Such instruments carry very high credit risk and are susceptible to default.

Note: +/- signs indicates their relative position within the Rating category concerned by one notch higher/lower.