Latest news with #TalhaIqbal
Zawya
13-03-2025
- Business
- Zawya
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@
Zawya
06-03-2025
- Business
- Zawya
Simah Rating Agency assigns solicited insurer financial strength ratings of A- to MALATH Cooperative Insurance Co.
Riyadh: Tassnief has assigned national scale Insurer Financial Strength (IFS) rating of A- (Single A Minus) to Malath Cooperative Insurance Co. ('Malath' or the 'Company'). The outlook on the rating is 'Stable'. The assigned rating is indicative of robust financial profile, low risk factors and high prospect of meeting policyholder liabilities. The rating has also been placed on 'Rating Watch – Positive' status on account of proposed merger with Liva Insurance Company. The rating will be reviewed upon the completion and finalization of the merger. Rating Rationale: The assigned ratings incorporate Malath's solid operational track record and current market position as a mid-sized insurance Company with a market share of around 1.8% in terms of gross premiums at end September-2024. Rating also takes into account the Company's conservative investment profile, sound reinsurance program & low net risk retention, satisfactory risk adjusted capitalization levels, and sound governance and risk management framework. The assessment further incorporates a diverse senior leadership team, with expertise across insurance, finance, technology, and risk management sectors. The Company's business mix incorporates healthy presence across 3 main segments, i.e. health, motor and property & casualty segments. Diversification in customer mix compares favorably as compared to peers and bodes well from a risk perspective. Gross premiums mix by customer type has depicted an improving trend particularly in 9M2024 with individuals and SMEs accounting for around 70% of the gross premiums. Growing business from individuals and SMEs remains a key focus area for the Company. Tassnief is of view that regulatory initiatives by the Insurance Authority (IA) will be important in supporting business growth, market stability, and enhance financial strengthen of the sector. Rating Triggers: Key rating trigger for the Company would be successful merger with Liva, an increase in market position and a greater diversification in business mix while improving underwriting performance and capitalization buffers. Moreover, strengthening financial flexibility through increasing absolute quantum of profitability and equity base remains important. About the Company: Malath Cooperative Insurance Co. ('Malath' or the 'Company') is a listed Saudi Joint Stock Company registered in KSA with CR#1010231787 dated April 09, 2007. Malath was listed on Tadawul in May 2017. The Company's shareholding is held by general public and institutional investors, with no single shareholder owing 5% or more. Malath's principal lines of business include medical, motor, marine, fire, engineering, casualty and other general insurance. For further information on this rating announcement, please contact Mr. Talha Iqbal (Ext. 6627) at +966-112506627 or email at RS@
