Rating upgrade for Unitech Hydropower, backed by Asian Life, but risk remains high
ICRA Nepal has upgraded the issuer rating of Unitech Hydropower from 'B minus' to 'B plus'. The long-term loan rating has also been upgraded from 'LB minus' to 'LB plus', but the assessment indicates that the risk in the company's ability to meet financial obligations on time remains high.
Kathmandu. The rating of Unitech Hydropower, which has investment from Asian Life Insurance Company, has been upgraded.
ICRA Nepal has upgraded the issuer rating of Unitech Hydropower to ICRANP-IR B plus. Previously, the company's issuer rating was B minus. Despite the upgrade, ICRA Nepal's assessment shows that the risk in the company's ability to meet its financial obligations on time remains high.
Similarly, ICRA has upgraded the rating of the company's long-term loan to LB plus. Previously, this rating was LB minus. The rating of the company's short-term loan has been maintained at A4.
Currently, the company's long-term loan stands at NPR 82.77 crore and short-term loan at NPR 3.50 crore.
Asian Life has invested NPR 12 crore in equity in Unitech Hydropower. The company has a 5.8 MW capacity Upper Fawa Hydropower Project in Taplejung district.