Total Project Cost For The New Building Of The British College Is Estimated To Be NPR 1,700 million

ICRA Nepal Limited, the first credit rating agency of Nepal has assigned a long-term rating of ICRA NP L Double B to the long-term loan limits of The British College Private Limited and a short-term rating of ICRA NP A four to the company’s short-term loan limits.

The rating factor attributed to the adequate operational history of The British College. The ratings also derive comfort from the college's steadily growing revenue profile. In fact, the turnover of TBC has improved by 8 to 10 percent in 2020 and 2021, despite the pandemic where the college tuition fees had been significantly waived. Also, the occupancy of the college has reached 66 percent in 2021 due to the increasing demand for studying subjects related to foreign universities. In 2020, the college's occupancy was 63 percent.

TBC has increased its turnover by an average of 10 percent in 2021. According to the ICRA, the college had a turnover of Rs 342.7 million in 2021. Likewise, it’s debt service coverage indicators have also remained adequate. The interest coverage ratio remained at 4.2 times while its debt service coverage ratio (DSCR) remained at 3.2 times.

Following the order of the Ministry of Education's regulation for foreign-university-affiliation, which states the colleges to have their own building within 15 years of operations, British college purchased land for their building in FY2021. The total project cost is estimated to be NPR 1,700 million, with debt equity ratio of 75:25. Even though the debt service coverage indicator remains adequate, the credibility of these indicators over the medium term, given the recent rise in interest rates in the banking industry remains to be seen.