ICRA Nepal Reaffirms [ICRANP-IR] BB- Issuer Rating for Lower Erkhuwa Hydropower Company Limited

ICRA Nepal Limited has reaffirmed the [ICRANP-IR] BB- Issuer Rating previously assigned to Lower Erkhuwa Hydropower Company Limited, signaling the company's moderate risk of failing to meet its financial obligations on time. This reaffirmation reflects ICRA Nepal's continued assessment of the company's creditworthiness and financial stability.

The [ICRANP-IR] BB- rating indicates that Lower Erkhuwa Hydropower Company is considered to have a moderate risk in fulfilling its financial commitments. However, it is important to note that this rating is not a guarantee of the company's ability to meet specific debt obligations, nor does it reflect the creditworthiness of any particular bond issued by the company. Instead, it provides an overall view of the company's financial health.

ICRA Nepal's rating scale ranges from [ICRANP-IR] AA, indicating very low credit risk, to [ICRANP-IR] C, indicating very high credit risk. Within each rating category, the presence of a plus (+) or minus (-) sign indicates the relative standing of the issuer within that category. For example, a rating of [ICRANP-IR] BB+ is one notch above [ICRANP-IR] BB, while [ICRANP-IR] BB- is one notch below.

The reaffirmed [ICRANP-IR] BB- rating suggests that Lower Erkhuwa Hydropower Company continues to face some challenges in its financial management, though it remains within a moderate risk bracket. Investors and stakeholders are advised to consider this rating as part of their broader assessment of the company's financial outlook and stability.