KATHMANDU: The government has taken a step forward in the Sovereign Credit Rating (SCR) process, which had been halted for three years.

SCR is a major indicator of the country’s financial status and credit capacity, seen through various bases; the rating provides accurate information about the state of investment risk in the country.

Foreign investors take the SCR as a precursor to investment.

Without a credit rating, Nepal has not been able to obtain commercial loans from international development partners.

With the aim of increasing foreign investment, the government had announced the implementation of the Sovereign Credit Rating in the fiscal year 2075/76. The government had issued public notices inviting companies to conduct SCR.

The world’s three major companies, Fitch, Moody’s, and Standard & Poor’s, had submitted applications.

Among them, the government had entered into an agreement with Fitch Ratings Agency for credit rating.

For this, immediate agreements were also made with the former British aid agency (DFID now UK aid).

For this process, the government has appointed Standard Chartered Bank as the rating advisor. Due to the negative indicators of the economy due to the COVID-19 pandemic and the negative message conveyed to the international community when credit rating is issued, this process has been halted for the past three years.

Finance Minister Barshaman Pun has again advanced the process of Sovereign Credit Rating.

Foreign investors had suggested not to delay the SCR during the international investment conference three years ago.

During the third investment summit, the government advanced the halted credit rating process.

The Ministry of Finance had organized a Capacity Development Workshop on ‘Sovereign Credit Rating’ in the capital on Friday.