Fitch Upgrades Salik's Credit Rating to A
Salik Company PJSC has received a credit rating upgrade from Fitch Ratings, reflecting its strong financial position and robust business model.
Summary
Salik's credit rating upgrade by Fitch Ratings to A with a stable outlook highlights the company's strong financial performance and strategic position in Dubai.
In a significant development for Salik Company PJSC, the exclusive toll gate operator in Dubai, Fitch Ratings has upgraded its investment-grade credit rating from A- to A with a stable outlook. This upgrade is a testament to Salik's robust financial performance, operational resilience, and strategic alignment with Dubai's economic growth.
Salik operates eight automatic toll gates utilizing Radio Frequency Identification (RFID) technology, strategically positioned across Dubai, predominantly on Sheikh Zayed Road. This exclusive positioning, under a 49-year concession agreement with the Roads and Transport Authority (RTA), ensures a stable long-term cash flow, a key factor in Fitch's decision to upgrade the rating.
The upgrade also reflects Salik's low leverage and strong balance sheet. As of September 30, 2025, the company reported a net debt/EBITDA ratio of 2.61x, well below its debt covenant of 5.0x. Additionally, Salik generated a free cash flow of AED 1.47 billion for the nine-month period, marking a 39.5% year-over-year increase, with a free cash flow margin of 64.7%.
Salik's financial health is further evidenced by its favorable net working capital balance of AED -578.4 million, equating to 19.1% of annualized revenues. These metrics underscore the company's ability to sustain strong cash flow generation and liquidity, crucial for maintaining investor confidence and optimizing access to capital markets.
His Excellency Mattar Al Tayer, Chairman of the Board of Salik, expressed that the credit rating upgrade is a reflection of the company's financial strength and management efficiency. It also signifies international confidence in Salik's business model and Dubai's smart transportation system.
Given Salik's strategic positioning, strong financial metrics, and the positive economic outlook for Dubai, the future appears promising for the company. Investors may consider this an opportune moment to buy, as the upgraded credit rating not only enhances Salik's market credibility but also positions it favorably for future growth and expansion opportunities.
Source
Summary
Fitch Ratings has upgraded Salik Company's credit rating from A- to A with a stable outlook. This upgrade is attributed to Salik's strong financial position, robust business model, and its significant connection with Dubai's economy, as well as improvements in the emirate's credit quality. Salik, the exclusive toll gate operator in Dubai, has demonstrated strong financial performance, operational resilience, and a commitment to enhancing transparency and optimizing capital market access. The upgrade also considers Salik's exclusive role in Dubai's toll system, low leverage, and long-term concession agreement with the RTA, which ensures stable cash flow. As of September 30, 2025, Salik maintained a net debt/EBITDA ratio of 2.61x, well below its debt covenant, and generated significant free cash flow. The upgrade reflects international confidence in Salik's business model and Dubai's transportation system.
