Salik Company PJSC, Dubai's exclusive toll gate operator, has had its 'A3' credit rating with a stable outlook reaffirmed by Moody's Ratings. This reaffirmation underscores Salik's robust financial performance, operational resilience, and strategic positioning within the Emirate of Dubai. The company's success is attributed to its exclusive toll gate operations, minimal competition from free roads or alternative transport modes, and a long-term concession agreement with the Roads and Transport Authority (RTA).

Moody's decision to maintain Salik's investment-grade rating is a testament to the company's strong business model, which benefits from consistent traffic growth driven by favorable macroeconomic and demographic trends in Dubai. Salik's low-risk profile is further bolstered by its minimal capital expenditure requirements, leading to high cash flow generation, modest financial leverage, and a strong liquidity position.

As of September 2025, Salik reported a trailing twelve-month net debt/EBITDA ratio of 2.61x, significantly below its debt covenant of 5.0x. The company generated free cash flow of AED 1.47 billion for the nine-month period, marking a 39.5% increase year-over-year, with a free cash flow margin of 64.7%. These figures highlight Salik's healthy liquidity and sustainable cash flow generation, positioning it well for future growth and stability.

CEO Ibrahim Sultan Al Haddad expressed his delight at the reaffirmation, citing it as a testament to Salik's financial strength and successful strategy implementation. While the company does not have immediate plans for public debt issuance, maintaining an investment-grade profile ensures readiness to access capital markets when needed.

Given Salik's strong financial position, stable outlook, and strategic advantages, investors might consider a 'buy' stance on the company's shares. The reaffirmation by Moody's not only reflects confidence in Salik's current operations but also suggests potential for future growth, making it an attractive investment opportunity.