Kathmandu. The Barnabas Museum Hotel, which was temporarily closed after vandalism and arson over the Genji movement, has downgraded its credit rating. ICRA Nepal has included the hotel in its credit watch list with negative impacts on the issuer’s valuation and bank facility valuation.

The company has a debt rating of Rs 96.59 crore for long-term debt and Rs 800 crore for short term loan. The company has a total debt rating of Rs 1.04 billion. ICRA Nepal has monitored the rating of the loan.

ICRA Nepal has reduced the long-term loan rating of the company from ‘ICRANP LB minus’ to ‘ICRANP LC Plus’. The company’s ability to repay its loans is weak. This indicates that there is a high possibility of defaulting on the company’s debt. Likewise, ICRA Nepal has assigned ‘ICRANP AFOR’ rating to ‘Short-term Loan’.

ICRA Nepal has closed the hotel due to the huge losses suffered by the hotel during the recent political unrest. It has been informed that its debt rating has been downgraded. The hotel was completed at a cost of more than Rs 1 billion and came into operation only last year. The hotel has been closed due to arson. The hotel was owned by the then Nepali Congress lawmaker Rajendra Bajgain.