(MENAFN- Khaleej Times)

Dubai's exclusive toll gate operator Salik Company's rating has been upgraded as it reported strong financial performance, introduced variable toll pricing and two new toll gates in the past one year.

The company said its investment-grade rating has been upgraded by Fitch Ratings from A- to A with a stable outlook.

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However, the company said in a statement to Dubai Financial Market - where it is listed - that it has no immediate plans for public debt issuance.

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Salik introduced variable toll pricing from January 31, 2025, and two new toll gates in November 2024 - increasing the number of gates to 10 across Dubai.

The two new toll gates - located at Business Bay Crossing on Al Khail Road, and Al Safa South on Sheikh Zayed Road between Al Meydan Street and Umm Al Sheif Street - were made operational in November last year.

Salik Company also reported strong nine-month profits, announcing net profit of Dh1.14 billion for the period, up 39.1 per cent year-on-year. In addition, the company also enjoys a robust balance sheet, a healthy liquidity position and sustainable and strong cash flow generation.

As of September 30, 2025, Salik recorded a trailing twelve-month net debt/EBITDA ratio of 2.61x, significantly below its debt covenant of 5.0x, and generated free cash flow of Dh1.47 billion for the nine-month period, up 39.5 per cent year-on-year, with a free cash flow margin of 64.7 per cent.

The other major factors that led to the upgradation of Salik's investment-grade rating are its exclusive position in Dubai's toll road system, low leverage, and long concession agreement with the Roads and Transport Authority (RTA), ensuring stability of long-term cash flow generation.

“The upgrade of Salik's credit rating reflects the strength of the company's financial position, the efficiency of its management, and its ability to achieve operational and financial performance in line with the highest global standards. This step is an important indicator of international institutions' confidence in Salik's business model and in the strength of Dubai's smart transportation system,” said Mattar Al Tayer, chairman of Salik.

“Following our results for an exceptional performance in the first nine months of 2025, we are delighted to have our positive investment grade rating upgraded. This upgrade is a testament to the strength of Salik's financial position and successful implementation of our strategy,” said Ibrahim Sultan Al Haddad, CEO of Salik.

“While we do not have immediate plans for public debt issuance, maintaining an investment-grade profile ensures that we are well-positioned to access capital markets when required,” said Al Haddad.

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