KATHMANDU: Finally Nepal has a credit rating agency. Credit Rating Agency Nepal Pvt Ltd (CRANE) has become the first credit rating agency (CRA) to be registered in Nepal and will start operating from November. CRA is a company that assigns credit ratings for issuers of certain types of debt obligations as well as the debt instruments themselves. The issuers of securities are companies, special purpose entities, state and local governments, non-profit organizations or national governments issuing debt-like securities that is bonds that can be traded on a secondary market. A credit rating for an issuer takes into consideration the issuer’s creditworthiness such as ability to pay back a loan and affects the interest rate applied to the particular security being issued. Prior to buying the securities, the public can get complete and reliable information about the instrument where one is going to pour in hard-earned money. With the increasing domestic corporate world of especially financial institutions, such rating agencies are the need of the hour. “Such rating agencies are self regulated and its not a compulsan rather a certifiaction that can boost the confidence of the investors and the company itself,” said CRANE chairman Sujeev Shakya. CRANE will begin rating services for individuals, corporates, financial institutions and instruments issued by them. “It will provide a full range of international quality rating and grading services for individuals and organisations,” he added. CRANE has also signed a Memorandum of Understanding (MoU) with CARE Ratings — India’s premier rating agency Credit Analysis & Research Ltd. CARE Ratings is a full-service rating company that offers a wide range of rating and grading services across sectors. It has unparalleled depth of expertise and its methodologies are in line with the best international practices. Recognised by Securities and Exchange Board of India (Sebi), Government of India (GoI) and Reserve Bank of India (RBI) CARE Ratings has completed over 6,256 rating assignments having aggregate value of about IRs 18,248 billion (till June 30), since its inception in April 1993. CARE Ratings managing director D R Dogra hoped that the MoU would bring world class rating methodologies to Nepal and add a complete new dimension to the country’s domestic financial and corporate world. Shakya said it was a continuation of beed management’s efforts to pioneer new businesses in Nepal. “We look forward to fill the void of a rating agency in Nepal and change the way business and financial transactions are conducted,” he said.