Simah Rating Agency assigns initial unsolicited national scale entity ratings to Mayar Holding Company
Riyadh: Tassnief has assigned initial long-term entity rating of '(BB-(pi))'' (Double B Minus unsolicited rating) and a short-term entity rating of 'T-5' to Mayar Holding Company. The 'BB-' ratings reflect low creditworthiness and high credit risk. The risk profile may vary significantly with changes in economic and sector conditions.
The unsolicited ratings, indicated by a 'pi' subscript, utilize analytical procedures that are parallel to traditional credit ratings, but differ in that they are based on public disclosures made available by companies, as well as other secondary sources. The 'pi' ratings do not carry an outlook. The 'pi' ratings are reviewed annually based on the latest financial statements, but may be reviewed earlier if a major event that could affect an entity's credit quality. The rated entity has not participated in the unsolicited credit rating, and the rating has not been disclosed to the rated entity prior to the announcement.
Rating Rationale: The assigned ratings incorporate Mayar's long operating track record of over two decades. Ratings also reflect good business fundamentals of elevators and escalators sector, which supports demand for the company's services, along with revenue diversification across segments and geographies. The company's presence in uncorrelated industries can help stabilize revenues during different economic cycles and market conditions. However, the ratings are constrained by a very weak financial profile, characterized by a low equity base, volatile and low margins, elevated leverage indicators, and very weak cash flow coverages. Additionally, there is a significant mismatch on the balance sheet, indicating a low capacity to meet obligations from internal cash flows.
The elevators and escalators industry in Saudi Arabia is expected to witness double digit growth from 2023 to2029. The key growth drivers of the sector comprise Vision 2030 initiatives (such as smart cities and economic zones), urbanization and population growth, as well as tourism and healthcare projects under Vision 2030. Going forward, Mayar is pursuing aggressive expansion through acquisitions, strategic partnerships, and large-scale contracts in food, agriculture, irrigation, and elevator solutions, thereby strengthening its market presence across multiple sectors.
Rating Triggers: A sizeable equity injection that reduces current leverage indicators and improve cash flow generation, resulting in enhanced debt servicing capacity, is critical for an upgrade in ratings.
About the Company: Mayar Holding Company is a Saudi joint stock company with CR#1010398836 dated 23 December 2013. The Company is engaged in management of subsidiaries of holding companies, provision of financing for subsidiaries of holding companies and owning and leasing industrial property rights to subsidiaries of holding companies.
For further information on this rating announcement, please contact Mr. Talha Iqbal, email at RS@Tassnief.com.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Channel Post MEA
3 hours ago
- Channel Post MEA
Wipro Establishes Its Middle East Regional Headquarters In Riyadh
Wipro Limited has announced the relocation of its Middle East regional headquarters from Al Khobar to Riyadh, Saudi Arabia. The new office in Riyadh was inaugurated in a ceremony attended by the Wipro executive team, employees, and customers. This is the latest addition to Wipro's growing presence in the region, which includes offices in Riyadh, Al Khobar, Jeddah, and Jubail. 'The inauguration of Wipro's new regional headquarters in Riyadh marks a significant milestone that contributes to accelerating the growth of the Kingdom's digital economy,' said Mohammed AlRobayan, Deputy Minister for Technology at the Ministry of Communications and Information Technology (MCIT). 'This also underscores the attractiveness of Saudi Arabia's digital business environment. We value the company's investment in developing national competencies, in line with the objectives of Saudi Vision 2030 and enhancing the Kingdom's position as a global technology hub.' In addition to this new office opening, Wipro recently signed a Memorandum of Understanding (MoU) with Prince Mohammad Bin Fahd University (PMU) to establish a Center of Excellence (CoE) in Riyadh. This partnership aims to upskill local talent by providing academic training in advanced technologies, hands-on experience, and access to Wipro's resources. The CoE will focus on equipping young Saudi nationals with future-ready skills, creating a talent pool that can add value to organizations and the kingdom. 'The establishment of our new regional headquarters in Riyadh reaffirms our commitment to supporting the dynamic business landscape in the Kingdom of Saudi Arabia,' said Vinay Firake, CEO – Asia Pacific, India, Middle East & Africa (APMEA), Wipro Limited. 'This strategic move, combined with our ongoing involvement in supporting the goals of the Kingdom, aligns with our vision of driving sustained growth and a future-ready workforce in the region. This commitment is strengthened by the recent appointment of Mohamed Mousa as our new Managing Director for Wipro Middle East out of our Riyadh headquarters, which will further advance our decades-long presence in the Middle East.'
Arabian Business
3 hours ago
- Arabian Business
Saudi Arabia's economy grows 3.4% in Q1 2025 as non-oil sector leads the way
Saudi Arabia's economy expanded by 3.4 per cent in the first quarter of 2025, compared to the same period in 2024, according to new data released by the General Authority for Statistics (GASTAT). The Kingdom's robust economic performance was driven primarily by a 4.9 per cent surge in non-oil activities, alongside a 3.2 per cent increase in government activities. Meanwhile, oil-related activities declined slightly by 0.5 per cent, underscoring the country's ongoing shift towards economic diversification under Vision 2030. Saudi GDP 2025 On a seasonally adjusted basis, real GDP increased by 1.1 per cent compared to the fourth quarter of 2024. GASTAT's report highlighted that non-oil activities were the largest contributors to real GDP growth on an annual basis, adding 2.8 percentage points to the total. Government activities contributed 0.5 percentage points, while net product taxes added a further 0.2 percentage points. Among individual sectors, wholesale and retail trade, restaurants, and hotels stood out with the highest annual growth rate of 8.4 per cent in Q1 2025, and a quarterly growth of 0.7 per cent, reflecting a rebound in consumer demand and tourism activity.
Khaleej Times
3 hours ago
- Khaleej Times
Blacklane Saudi expansion: Luxury Chauffeur service in four major cities launched
Blacklane, the global chauffeur service, has revealed expansion plans throughout the Kingdom of Saudi Arabia as part of its growth strategy. This announcement follows the momentum of Blacklane's scale-up across Dubai and marks a considerable step in its continued growth across the Middle East. Blacklane now has operations in more than 50 countries. Addressing the increasing demand for luxury and sustainable mobility services in the region, Blacklane will offer premium vehicles, with plans to introduce electric vehicles (EVs) in a future phase to set a new benchmark for sustainable mobility across the kingdom. Plus, Blacklane's investment plans include the roll out of the Blacklane Chauffeur Academy providing professional training options to chauffeur partners in Saudi Arabia. First-class vehicles available on the Blacklane platform will include Blacklane's trademark black and white two-tone Mercedes S Class options. Dr Jens Wohltorf, CEO and co-founder, Blacklane, said: 'Bringing our luxury chauffeur service to the Kingdom marks an exciting milestone in Blacklane's global expansion. Saudi is a key destination for sophisticated travellers and residents alike, and we're proud to introduce a new standard of reliable, high quality and seamless mobility to the region'. He continued: 'We are honoured that this expansion supports the goals of Vision 2030. We are committed to contributing significantly to the creation of new job opportunities across the Kingdom. We are dedicated to fostering local talent and supporting the continued growth of Saudi's thriving economic diversification'. Following the establishment of the Riyadh office, Blacklane has made several strategic appointments in the last few months as part of its expansion across the Kingdom. Led by general manager Adib Samara, this growing sales, marketing, operations and account management team is a critical component in the brand's expansion and investment across Saudi Arabia. Blacklane provides chauffeur services in Dammam, Jeddah, Makkah, and Riyadh. Presence across further cities in Saudi Arabia will be announced in the coming months.
