Sound Credit Rating

Nepal has secured a BB- score with stable outlook in its first-ever sovereign credit rating. The rating process, conducted by Fitch Ratings Ltd., involved a comprehensive evaluation of the country's economic structure, public finance, debt sustainability, and medium-to-long-term growth plans, as laid out in Nepal's 16th Five-Year Plan which came into force in the current fiscal year (FY) 2024/25. Among South Asian countries, only India's score is higher than Nepal's. It is a significant milestone highlighting the nation's economic structure, fiscal management, and macroeconomic stability, according to the Ministry of Finance (MoF). Normally, countries with score above BB- are considered conducive for investment, while ratings below this is taken as risky with potential insolvency.