Page 119 - SALIK PR REPORT DECEMBER 2024

12/6/24, 1:56 PM Salik assigned strong investment grade credit ratings by Moody’s, Fitch
“Our business model affords us a unique position in the market as Dubai’s sole tollgate operator,
and our consistently robust performance coupled with a very healthy balance sheet is reflected in the
investment grade ratings we have been assigned today,” added Al Tayer.
Moody’s rates Salik A3 with a stable outlook
Meanwhile, Moody’s assigned an investment grade issuer credit rating of A3 with a stable outlook
to Salik, reflecting the company’s close link to the development of Dubai, with positive economic
and demographic trends continuing to support Salik’s strong operating performance.
Further supporting Salik’s low-risk business profile is its position as the exclusive toll gate operator
in Dubai, a history of consistent traffic growth, minimal capex requirements of the business
translating into high cash flow generation, modest financial leverage and strong liquidity position.

“Coming just weeks after record results for the first nine months of 2024, during which we recorded
our highest-ever third-quarter revenue, we are delighted to be assigned investment grade ratings in
the single A category by both Fitch and Moody’s. Making our credit ratings public underscores our
commitment to transparency and demonstrates our confidence in Salik’s financial position,” added
Ibrahim Sultan Al Haddad, CEO of Salik.
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Salik generates AED1.05 billion in free cash flow
As of September 30, 2024, Salik recorded a trailing twelve-month net debt/EBITDA ratio of 2.1x,
significantly below its debt covenant of 5.0x, and generated free cash flow of AED1.05 billion for
the nine-month period, up 1.3 percent annually, with a free cash flow margin of 64.3 percent.
“While we do not have immediate plans for public debt issuance, these ratings offer us greater
future flexibility in the financial markets, and I would like to state my gratitude to the whole Salik
team for their hard work towards achieving this significant milestone for our business,” added Al
Haddad.
In recent developments, Dubai’s Roads and Transport Authority announced that it will implement
variable road toll pricing and variable parking tariff policies, including event-specific parking
tariffs, as part of a comprehensive strategy to enhance traffic flow in the city. The new Salik system,
set to launch at the end of January 2025, will offer motorists toll-free passage between 1am and
6am. During weekdays, the toll will be AED6 during morning peak hours (6am to 10am) and
evening peak hours (4pm to 8pm).
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