KATHMANDU, Oct 16: Nepal Electricity Authority (NEA) has, this year too, received the 'Double A Plus' credit rating.

ICRA Nepal Ltd, the credit rating agency in Nepal, has granted the 'ICRA NP Double A Plus' to the NEA, a state-owned entity.

The recipients of rating are considered to have a high degree of safety regarding timely servicing of financial obligations. They carry very low credit risk.

According to ICRA Nepal, the rating is only an opinion on the general creditworthiness of the rated entity and is not specific to any debt instrument.

The financial status of NEA, assets, business and financial risks, managerial capacity, internal and external environmental factors affecting operational effectiveness were assessed by ICRA Nepal before assigning an issuer rating of Double A Plus to the organization.

Credit ratings serve as a tool for assessing the creditworthiness of both individuals and organizations and for expressing opinion. They provide opinions on an entity's ability to meet its debt obligations, presenting a clear and simple indicator about related financial risks.

NEA Managing Director Kulman Ghising said the NEA has bagged the 'Double A Plus' credit rating from among the public entities, presenting its high-level of capacity to bear the financial obligations.

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