KATHMANDU: Credit rating agency Infomerics Nepal has placed the credit ratings of 18 companies under “Credit Watch with Negative Implications” after court cases were filed against several individuals, including businessmen Deepak Bhatt and Shulabh Agrawal, in connection with alleged financial irregularities, securities violations, insurance-related offenses, banking crimes, and money laundering investigations.

According to Infomerics Nepal, the affected companies have collectively borrowed more than Rs 104 billion from banks and financial institutions. The rating agency said the move reflects concerns that ongoing investigations involving company promoters and directors could increase financial, managerial, governance, and reputational risks.

The companies placed under heightened surveillance include Jagdamba Hospitality Group, Jagdamba Auto Group, Jagdamba Motors, Jagdamba Steels, Shaurya Cement Industries, Riddhi Siddhi Cement Industries, Himalayan Life Insurance, Jagdamba Mobiles, Jagdamba Hire Purchase, Himalayan Investment Banker, Jagdamba Floor and Agro, Hulas Finserv Hire Purchase, Ganapati Vanaspati, Litmus Industries, TeleTalk, Tele Director, Ram Janaki Hydropower and Vedanshi Infrastructure.

As part of the investigations, two charge sheets have been filed at the Kathmandu District Court, while one case each has been lodged at the Patan High Court and the Special Court. Prosecutors have named 42 individuals in insurance-related cases, 81 in securities-related cases, 39 in money laundering cases, and five in banking offense cases.

No defendant has been convicted by any court so far. The investigations and judicial proceedings remain ongoing, and no final determination has yet been reached.

Infomerics Nepal said the decision to place the ratings under negative watch was based on uncertainties surrounding the role of key individuals under investigation, the possibility of changes in company boards and management, liquidity conditions, operational continuity, and potential reputational damage.

The agency stated that it will review the ratings once there is greater clarity regarding the outcome of legal proceedings, the actual impact on business operations, and the effectiveness of corporate governance measures.