Samaj Laghubitta Fails To Provide Requisite Information For Monitoring The Ratings

Despite numerous requests from CARE Ratings Nepal Limited (CRNL), the “D” class microfinance institution, Samaj Laghubitta Bittiya Sanstha Limited (SAMAJ), has not provided the requisite information for monitoring the ratings. Here, ratings are the representation of the creditworthiness of a business. The credit rating is a key aspect that makes or breaks a loan application.

Security Exchange Board of Nepal (SEBON) attempts to bring more transparency to the operations of credit rating agencies. Through SEBON’s guidelines, CRNL has reviewed the rating of SAMAJ on the basis of the best available information. However, the said information is not sufficient to arrive at a fair rating. Hence, samaj Laghubitta has been denoted as CARE-NP B+ (Is): Issuer not cooperating. 

Previously, Samaj Laghubitta (SAMAJ) and Swastik Laghubitta (SWSLBSL) signed an agreement of merger with each other, and the shares were never opened for trading in the secondary market. However, the merger agreement had terminated. It was rumored that the termination was due to disagreement regarding the location of the central office after the merger.

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