KATHMANDU, Nov. 18 (Xinhua) -- Nepal has received a "BB-" sovereign credit rating from the international credit rating agency, Fitch Ratings, in the second-ever sovereign rating of the Himalayan nation.
The country had received the same rating in November last year.
"Fitch Ratings has affirmed Nepal's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook," Fitch said in the rating details released on Tuesday.
Fitch said Nepal's "BB-" rating reflects its low and highly concessional government and external debt burdens, strong external liquidity and solid medium-term growth prospects anchored by the hydropower sector.
"The rating is constrained by an underdeveloped economy that is vulnerable to external shocks and natural disasters, and weaker structural features, such as Gross Domestic Product (GDP) per capita and governance metrics, than 'BB' category peers," it said.
The international rating agency has also pointed out the potential impact on rating due to political uncertainty in the country. It said the interim government installed on Sept. 12 has restored calm and announced elections for March 5, 2026, but delays in the political transition and a more fragmented party landscape could undermine policymaking effectiveness and further weaken governance standards. ■