Moody's affirms Almarai's 'Baa3' rating, Outlook Stable

Almarai headquarters

Moody's affirmed Almarai Co.'s credit rating at "'Baa3", with Stable Outlook.

The agency stated that the rating affirmation reflects the company's continued growth as well as its prudent management of credit and liquidity.

Moody's also affirmed the Baa3 rating on the $500 million backed senior unsecured sukuk EMTNs due in 2024 issued by Almarai Sukuk Ltd.

According to the agency, the dairy producer's earnings before interest, taxes, and amortization (EBITA) will likely increase, similar to 2022, and EBITA margins are expected to normalize to levels around 13-15% in the next three. This comes amid the stability of input costs after they increased significantly in 2021 and 2022, which will positively affect, along with higher revenues, the company's rating.