Latest news with #Tassnief
Zawya
20-07-2025
- Business
- Zawya
Simah Rating Agency assigns 'BBB-' solicited national scale entity ratings to Innovest Real Estate Company
Riyadh: Tassnief has assigned long-term national scale entity rating of '(BBB-)'' (Triple B Minus) and short-term entity rating of 'T-4' to Innovest Real Estate Company ('Innovest' or 'the Company'). The assigned ratings reflect adequate creditworthiness, thus low credit risk. Risk profile may exhibit moderately high variation with changes in economic / sector conditions. Rating Rationale: The assigned ratings are underpinned by Innovest's growing presence in real estate development sector, satisfactory operational track record, and a strong portfolio of ongoing residential projects across key regions in Saudi Arabia. Ratings are constrained by historical volatility in business and financial risk profile, low quantum of cash flow generated from core real estate business over the last 3 years and weak leverage profile in terms of debt to FFO. However, comfort is drawn from sizeable land holdings and strong revenue visibility over the rating horizon which is expected to translate into an improved business and financial risk profile. The Company also has a satisfactory governance framework including effective board oversight, sound internal controls and experienced management team. Innovest has strong execution capabilities, with over 1,100 residential units developed historically and ~2,000 units currently under development. Revenue witnessed growth driven by the execution of key projects such as Jadan Al Fursan and Jadan Al Sadan. The Company maintains reasonable business and geographic diversity, with projects spread across central, western and eastern regions. Revenue visibility is underpinned by strong ongoing project pipeline, with a sizeable share of villas already sold. However, business profile remains exposed to cyclicality associated with the real estate development sector and execution risk in the medium term due to a shift from government-backed to privately sourced developments. Going forward, increased pace of project execution, resulting in higher revenues and cash flow generation is considered important. Rating Triggers Negative rating triggers include Any significant increase in leverage indicators from current levels that impact the Company's debt servicing ability. Significantly lower revenues and cash flow generation as compared to projections. Positive rating triggers include Increase in revenue profile and cash flow generation. Achieving a more stable business and financial profile. About the Company: Innovest Real Estate Company, referred to as "Innovest" or "the Company", is a Closed Joint Stock Company registered in the Kingdom of Saudi Arabia under the commercial registration number 2051041820. Innovest is engaged in real estate development, housing, and construction of commercial and residential properties. For further information on this rating announcement, please contact Mr. Talha Iqbal (Ext. 6627) at +966-112506627 or email at RS@ Rating Methodology for Corporate (v.2. 2019) can be found on the website:
Zawya
11-06-2025
- Business
- Zawya
Saudi: Cenomi Centers unveils $2.02mln sale deal
Arabian Centres Company (Cenomi Centers) sold a land plot in Al Kharj located on Riyadh-Al Kharj Road, with a total area of 425,390 square meters, for SAR 100 million. The sale deal aligns with the company's program to sell an identified portfolio of non-core assets worth around SAR 2 billion, according to a bourse filing. The net book value of this land on the company's financial statements amounted to SAR 93.30 million as of 31 March 2025. Cenomi Centers will use the proceeds from this transaction to fund and support its internal resources. The positive financial impact of the transaction is expected to appear in its financial results for the second quarter (Q2) of 2025. SIMAH Rating Agency (Tassnief) recently assigned a long-term national scale entity rating of (A-) and a short-term entity rating of 'T-3' to Cenomi Centers. All Rights Reserved - Mubasher Info © 2005 - 2022 Provided by SyndiGate Media Inc. (
Zawya
05-06-2025
- Business
- Zawya
Tassnief assigns ‘A-‘ national scale entity ratings to Cenomi Centers
Riyadh - SIMAH Rating Agency (Tassnief) has assigned a long-term national scale entity rating of (A-) and a short-term entity rating of 'T-3' to Arabian Centres Company (Cenomi Centers). The assigned ratings reflect low credit risk, reflecting Cenomi Centers' leading market position, satisfactory business diversity, and strong operating performance, according to a bourse disclosure. They also highlighted a favorable operating environment, which is expected to back operating performance over the rating horizon. Cenomi Centers has a leading market share of nearly 18% in gross leasable area (GLA), three times that of its nearest competitor, highlighting its advantage and operational depth in a fragmented market. In the first quarter (Q1) of 2025, Cenomi Centers generated 19.98% higher net profit at SAR 222.70 million, compared to SAR 185.60 million in Q1-24.
Zawya
13-04-2025
- Business
- Zawya
Tassnief assigns initial Unsolicited National Scale Entity Ratings to Atlas Elevators Company for General Trading and Contracting
Riyadh: Tassnief has assigned initial long-term entity rating of '(BB(pi))'' (Double B unsolicited rating) and a short-term entity rating of 'T-5' to Atlas Elevator Company. The 'BB' ratings reflect low creditworthiness and high credit risk. risk profile may exhibit wide variation with changes in economic and sector conditions. The unsolicited ratings, denoted by a 'pi' subscript, utilize analytical procedures that are parallel to traditional credit ratings. However, differ in that they are based on public disclosures made available by companies, as well as other secondary sources. The 'pi' ratings do not carry an outlook. These ratings are reviewed annually based on the latest financial statements, though an earlier review may occur if a significant event affecting an entity's credit quality arises. The rated entity has not participated in the unsolicited credit rating, and the rating has not been disclosed to the entity prior to the announcement. Rating Rationale: The assigned ratings reflects Atlas' considerable experience in the escalators and elevators business, gained through associated entities operating in foreign markets, as well as its limited-scale operations within the Kingdom. Overall, including foreign operations, Atlas has completed over 15,000 projects, with more than 10,000 contracts currently under maintenance, and a client base exceeding 25,000. Including its foreign operations, it has established partnerships with Hyundai Elevators, Sodimas, Delfar, TK Access Limited, Hidral, PVE and Terry Lifts. Ratings also incorporate a satisfactory governance framework and an experienced management team. The elevators and escalators industry in Saudi Arabia is expected to witness double digit growth from 2023 to 2029. The key growth drivers of the sector comprise Vision 2030 initiatives (such as smart cities and economic zones), urbanization and population growth, as well as tourism and healthcare projects under Vision 2030. However, Atlas may face several challenges, including the timely execution of ongoing construction projects and the increasing demand for sustainable solutions. Furthermore, its financial risk profile may be constrained by a stagnant revenue trend, despite maintaining good profitability, capitalization profile that is sound in relation to scale of operations and substantial inventory on balance sheet which has constrained the working capital cycle. Specific focus on inventory management is warranted in order to prevent pressure on the liquidity profile of the Company. Rating Triggers: The addition of new projects to the order book, which supports revenue growth and enhances scale of operations, will serve as a positive rating trigger. Moreover, the company's ability to reduce volatility in its business and financial risk profile through successful execution of diversification efforts, along with a strong focus on inventory management, will be crucial. About the Company: Atlas Elevators Company for General Trading and Contracting is a Saudi joint stock company with CR#1010280805 dated January 2010. The Company is engaged in installation, repair and maintenance of escalators and elevators. For further information on this rating announcement, please contact Mr. Talha Iqbal (Ext. 6627) at +966-112506627 or email at RS@
Zawya
13-03-2025
- Business
- Zawya
Simah Rating Agency assigns initial unsolicited national scale entity ratings to Mayar Holding Company
Riyadh: Tassnief has assigned initial long-term entity rating of '(BB-(pi))'' (Double B Minus unsolicited rating) and a short-term entity rating of 'T-5' to Mayar Holding Company. The 'BB-' ratings reflect low creditworthiness and high credit risk. The risk profile may vary significantly with changes in economic and sector conditions. The unsolicited ratings, indicated by a 'pi' subscript, utilize analytical procedures that are parallel to traditional credit ratings, but differ in that they are based on public disclosures made available by companies, as well as other secondary sources. The 'pi' ratings do not carry an outlook. The 'pi' ratings are reviewed annually based on the latest financial statements, but may be reviewed earlier if a major event that could affect an entity's credit quality. The rated entity has not participated in the unsolicited credit rating, and the rating has not been disclosed to the rated entity prior to the announcement. Rating Rationale: The assigned ratings incorporate Mayar's long operating track record of over two decades. Ratings also reflect good business fundamentals of elevators and escalators sector, which supports demand for the company's services, along with revenue diversification across segments and geographies. The company's presence in uncorrelated industries can help stabilize revenues during different economic cycles and market conditions. However, the ratings are constrained by a very weak financial profile, characterized by a low equity base, volatile and low margins, elevated leverage indicators, and very weak cash flow coverages. Additionally, there is a significant mismatch on the balance sheet, indicating a low capacity to meet obligations from internal cash flows. The elevators and escalators industry in Saudi Arabia is expected to witness double digit growth from 2023 to2029. The key growth drivers of the sector comprise Vision 2030 initiatives (such as smart cities and economic zones), urbanization and population growth, as well as tourism and healthcare projects under Vision 2030. Going forward, Mayar is pursuing aggressive expansion through acquisitions, strategic partnerships, and large-scale contracts in food, agriculture, irrigation, and elevator solutions, thereby strengthening its market presence across multiple sectors. Rating Triggers: A sizeable equity injection that reduces current leverage indicators and improve cash flow generation, resulting in enhanced debt servicing capacity, is critical for an upgrade in ratings. About the Company: Mayar Holding Company is a Saudi joint stock company with CR#1010398836 dated 23 December 2013. The Company is engaged in management of subsidiaries of holding companies, provision of financing for subsidiaries of holding companies and owning and leasing industrial property rights to subsidiaries of holding companies. For further information on this rating announcement, please contact Mr. Talha Iqbal, email at RS@
