Dubai – Mubasher: Salik, listed on the Dubai Financial Market, has announced an upgrade in its credit rating from the investment-grade category by Fitch, moving from (-A) to (A) with a stable outlook. This upgrade reflects the results of the annual review process undertaken by the agency and aligns with Salik’s proactive approach to enhancing transparency and improving its access to capital markets, both now and in the future, according to the company’s statement.
Factors Contributing to the Upgrade
This credit rating enhancement considers Salik’s exclusive rights to operate the toll gate in the emirate and its low debt levels. Moreover, the long-term concession agreement with the Roads and Transport Authority guarantees stability in cash flow generation over the long term. Fitch also based its rating on Salik’s strong ties to Dubai’s growing economy and the improving credit quality of the emirate.
Solid Financial Foundations
The upgraded rating is supported by a robust balance sheet, a healthy liquidity position, and a sustainable cash flow generation capacity. Salik recorded a net debt-to-EBITDA ratio of 6.12 times for the year ending September 30, 2025, significantly below the maximum leverage limit of 5 times. Furthermore, the company achieved free cash flows totaling AED 1.47 billion during the first nine months of the year, marking a 39.5% year-on-year increase, alongside a free cash flow margin of 64.7%.
Impressive Revenue Growth
During the same period, Salik also reported a stable net working capital balance of AED 578.4 million, representing a relatively consistent ratio to revenues, approximately -19.1%. The company’s profits soared by 39% in the first nine months of 2025 compared to the previous year. Reportedly, Salik’s earnings reached AED 1.14 billion by the end of this period, up from AED 822.04 million during the comparable period in 2024, according to the company’s unaudited financial data.
Quarterly Performance Indicators
In the third quarter of 2025, Salik’s net profit climbed to AED 372.92 million, compared to AED 277.28 million in the same quarter of 2024. Revenue also showed significant growth, rising to AED 737.7 million in Q3 2025 from AED 546.14 million in Q3 2024. These figures underline the solid financial momentum that has accompanied the positive credit rating upgrade from Fitch, reinforcing Salik’s commitment to maintaining a strong market position.