Ncell’s credit ratings reaffirmed as ICRA Nepal signals strong financial stability

KATHMANDU: Nepal’s private telecom giant Ncell Axiata Limited has received a fresh vote of confidence after ICRA Nepal reaffirmed its long-term and short-term credit ratings, highlighting the company’s stable operations, resilient profitability, and strong capacity to meet financial commitments. The agency maintained the long-term rating at ICRA NP LA and the short-term rating at ICRA NP A1, indicating adequate to very strong safety in servicing obligations with low credit risk.

According to the latest rating rationale, the reaffirmation reflects Ncell’s consistent ability to sustain healthy operating performance despite changes in the broader telecom landscape.

The company continues to benefit from its established nationwide network, strong brand recognition, and long operating history as Nepal’s first private sector GSM service provider, factors that reinforce its competitive positioning and business stability.

Analysts noted that the company’s profitability indicators remain robust, with operating margins still around half of total revenue. Effective cost management, disciplined capital deployment, and steady subscriber demand for mobile data services have helped the operator maintain solid earnings strength. These fundamentals continue to underpin the rating agency’s confidence in Ncell’s financial resilience and operational efficiency.

The reaffirmed ratings also take into account the company’s sound capitalisation profile and comfortable coverage metrics. Over recent years, Ncell has maintained a balanced financing structure while continuing to generate strong internal cash flows.

This has enabled it to support network upgrades, service expansion, and digital innovation without undermining overall financial stability.

Liquidity remains another supportive factor behind the positive rating outcome. The company holds substantial cash reserves and retains access to available funding lines, providing flexibility for operational needs and ongoing infrastructure investment.

This financial cushion strengthens Ncell’s ability to respond to market shifts, technology upgrades, and evolving customer demand patterns across Nepal.

ICRA Nepal has further highlighted the company’s experienced leadership and management depth as a continuing credit strength. The presence of seasoned professionals with telecom expertise supports strategic execution, network quality improvements, and service diversification. Strong governance practices and operational continuity are viewed as important enablers for sustaining performance in Nepal’s competitive telecom market.

The rating agency also acknowledged the structural strengths of the telecom sector, including high entry barriers and a large established subscriber base, which support predictable demand for mobile connectivity.

With rising data consumption, expanding digital services, and growing reliance on mobile internet, Ncell remains positioned to play a central role in Nepal’s digital economy and connectivity expansion.

Industry observers say the reaffirmed ratings send a reassuring signal to investors, partners, and customers about the company’s operational continuity and financial discipline.

A stable credit profile strengthens confidence in Ncell’s capacity to sustain service quality, invest in next-generation technologies, and support Nepal’s fast-evolving digital ecosystem.

As Nepal’s telecom sector continues to modernise, the reaffirmation positions Ncell as a key private sector driver of connectivity, innovation, and digital inclusion.

The company’s long operating experience, nationwide reach, and sustained financial strength remain central to its contribution to business productivity, financial inclusion, and technology-led growth across the country.

The latest assessment ultimately underscores a consistent message: Ncell continues to demonstrate stability, disciplined management, and dependable performance in Nepal’s communications landscape.

With strong institutional foundations, sustained service demand, and ongoing investment in network quality, the company remains well placed to support the country’s expanding digital future while maintaining the operational strength recognised in its reaffirmed credit ratings.

In practical terms, the ratings confirmation suggests that lenders and market stakeholders can continue to view the company as a reliable participant in Nepal’s financial and corporate landscape. For suppliers, infrastructure partners, and service vendors, the decision reinforces expectations of timely settlements and stable business engagement, which helps maintain confidence across the telecom value chain.

The reaffirmation also aligns with Nepal’s broader digital transformation agenda, where private telecom investment plays a crucial enabling role. Reliable mobile networks support e-commerce, digital payments, remote education, online public services, and enterprise connectivity.

In this context, Ncell’s stable financial standing strengthens the institutional base required for sustained technological progress and wider digital access.

Market analysts note that rating stability often serves as a forward-looking indicator of business continuity, signalling that the company retains the operational depth, customer scale, and strategic focus needed to navigate industry transitions.

For Nepal’s telecom users, the development ultimately points to continued service reliability, network investment, and innovation-led competition in the years ahead, reinforcing the sector’s importance to economic modernisation and digital resilience nationwide.

This momentum is expected to encourage further ecosystem partnerships, technology adoption, and service innovation, helping strengthen Nepal’s connectivity backbone and supporting inclusive digital growth for businesses, communities, institutions, and future investment across the national economy in the coming decade ahead.