Moody's assigns Baa3 rating to Almarai; maintains stable outlook

Moody's Investors Service (Moody's) has assigned a Baa3 issuer rating to Almarai Company, while adding that the rating outlook remains stable.

"Almarai's Baa3 rating reflects its leading market positions and high EBITDA margin thanks to a vertically integrated supply chain, which partially offsets its concentration risk on dairy products," said Lahlou Meksaoui, a Moody's lead analyst.

Moody’s said the stable outlook reflects its expectation that Almarai's credit profile will be able to withstand the current adverse market conditions without breaching the current rating category guidance.

In a related development, S&P Global Ratings has assigned a BBB-' long-term and 'A-3' short-term issuer credit ratings to Almarai, also with a stable outlook.

“The stable outlook reflects S&P’s view that Almarai's operating performance should remain stable over the next two years, with low revenue growth offset by solid pricing power and cost-saving initiatives,” S&P said in a statement on Sunday.