Nepal retains BB- sovereign credit rating for third consecutive year
Summary
Nepal has retained its BB- sovereign credit rating with a stable outlook for the third consecutive year, according to Fitch Ratings. The agency said the country’s external buffers, manageable debt burden and stable banking liquidity have helped keep the rating unchanged despite recent natural disasters and economic shocks.
Key Points
- Nepal has kept its BB- sovereign credit rating with a stable outlook for the third consecutive year.
- Fitch Ratings said Nepal’s foreign exchange reserves, remittance inflows and manageable public debt support the rating.
- The report highlighted contained banking-sector risks, with non-performing loans at around 5-6 percent and liquidity remaining adequate.
- Nepal’s low reliance on costly commercial external borrowing and limited FDI exposure were also cited as strengths.