Ratings agency AM Best has announced that it has placed under review with positive implications the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb+” (Fair) of Himalayan Reinsurance Limited (Nepal).
AM Best stated that the ratings of Himalayan Re have been placed under review with “positive implications” because of their expectation that the company will complete a public listing over the near term.
The agency noted that its status reflects the anticipated improvement in the company’s balance sheet strength assessment associated with successful capital raising.
In addition shareholders’ equity is expected to more than double following the successful completion of its initial public offering, in the form of an increase of NPR 3 billion in paid-up capital and additional share premium.
The transaction is currently pending regulatory approval and is due to be completed in March 2023.
Best has said that the ratings will remain under review until the successful completion of the initial public offering.
