Latest news with #Tassnief
Zawya
4 days ago
- Business
- Zawya
Tassnief assigns ‘A-‘ national scale entity ratings to Cenomi Centers
Riyadh - SIMAH Rating Agency (Tassnief) has assigned a long-term national scale entity rating of (A-) and a short-term entity rating of 'T-3' to Arabian Centres Company (Cenomi Centers). The assigned ratings reflect low credit risk, reflecting Cenomi Centers' leading market position, satisfactory business diversity, and strong operating performance, according to a bourse disclosure. They also highlighted a favorable operating environment, which is expected to back operating performance over the rating horizon. Cenomi Centers has a leading market share of nearly 18% in gross leasable area (GLA), three times that of its nearest competitor, highlighting its advantage and operational depth in a fragmented market. In the first quarter (Q1) of 2025, Cenomi Centers generated 19.98% higher net profit at SAR 222.70 million, compared to SAR 185.60 million in Q1-24.
Zawya
13-04-2025
- Business
- Zawya
Tassnief assigns initial Unsolicited National Scale Entity Ratings to Atlas Elevators Company for General Trading and Contracting
Riyadh: Tassnief has assigned initial long-term entity rating of '(BB(pi))'' (Double B unsolicited rating) and a short-term entity rating of 'T-5' to Atlas Elevator Company. The 'BB' ratings reflect low creditworthiness and high credit risk. risk profile may exhibit wide variation with changes in economic and sector conditions. The unsolicited ratings, denoted by a 'pi' subscript, utilize analytical procedures that are parallel to traditional credit ratings. However, 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. These ratings are reviewed annually based on the latest financial statements, though an earlier review may occur if a significant event affecting an entity's credit quality arises. The rated entity has not participated in the unsolicited credit rating, and the rating has not been disclosed to the entity prior to the announcement. Rating Rationale: The assigned ratings reflects Atlas' considerable experience in the escalators and elevators business, gained through associated entities operating in foreign markets, as well as its limited-scale operations within the Kingdom. Overall, including foreign operations, Atlas has completed over 15,000 projects, with more than 10,000 contracts currently under maintenance, and a client base exceeding 25,000. Including its foreign operations, it has established partnerships with Hyundai Elevators, Sodimas, Delfar, TK Access Limited, Hidral, PVE and Terry Lifts. Ratings also incorporate a satisfactory governance framework and an experienced management team. The elevators and escalators industry in Saudi Arabia is expected to witness double digit growth from 2023 to 2029. 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. However, Atlas may face several challenges, including the timely execution of ongoing construction projects and the increasing demand for sustainable solutions. Furthermore, its financial risk profile may be constrained by a stagnant revenue trend, despite maintaining good profitability, capitalization profile that is sound in relation to scale of operations and substantial inventory on balance sheet which has constrained the working capital cycle. Specific focus on inventory management is warranted in order to prevent pressure on the liquidity profile of the Company. Rating Triggers: The addition of new projects to the order book, which supports revenue growth and enhances scale of operations, will serve as a positive rating trigger. Moreover, the company's ability to reduce volatility in its business and financial risk profile through successful execution of diversification efforts, along with a strong focus on inventory management, will be crucial. About the Company: Atlas Elevators Company for General Trading and Contracting is a Saudi joint stock company with CR#1010280805 dated January 2010. The Company is engaged in installation, repair and maintenance of escalators and elevators. For further information on this rating announcement, please contact Mr. Talha Iqbal (Ext. 6627) at +966-112506627 or email at RS@
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@
Argaam
16-02-2025
- Business
- Argaam
Unified credit ratings for PIF project contractors: Tassnief CEO
Imad Kurdi, CEO of Simah Rating Agency (Tassnief), said the Public Investment Fund's (PIF) economic enhancement program aims to unify financial solvency assessments for contractors and PIF-affiliated firms. The goal is to ensure efficient project execution and sustainable funding support. Speaking to Argaam at the PIF-Private Sector Forum, Kurdi explained that the program aims to develop a unified credit rating system. This helps determine the project scale each contractor can handle based on financial capacity, improving transparency and reducing funding assessment discrepancies. The methodology balances financial metrics (40%) with sector, industry, and management quality criteria. This structured approach ensures contractors take on projects aligned with their financial strength. Kurdi highlighted that standardizing risk assessments across PIF-affiliated firms minimizes rating discrepancies and strengthens confidence among financiers and contractors. He highlighted the collaboration with insurers and the Insurance Authority to introduce surety bonds as an alternative to bank guarantees, improving project efficiency and reducing reliance on bank facilities. Project solvency has risen by an average of 28% since implementing the new framework, Kurdi said. This improvement reflects greater contractor efficiency in executing mega-projects tied to Vision 2030, ensuring timely completion, he added. Discussions are ongoing with the Saudi Central Bank (SAMA) to integrate the new credit ratings into the financial system, potentially enabling future bond or credit-linked securities issuances.
