Moody's rates Almarai Baa3

Moody's Investors Service said it assigned a Baa3 issuer rating to Almarai Co.

The outlook is stable.

The ratings reflect its leading market positions and high EBITDA margin thanks to a vertically integrated supply chain, which partially offsets its concentration risk on dairy products, Moody's said.

The ratings are supported by the strong market positions in products such as milk, cheese, butter, bakery and well-recognized brands, the agency said.

The ratings also recognize the company to generate strong organic growth, although at a negative rate in recent quarters, high margins thanks to a vertically integrated supply chain, manufacturing efficiencies and strict control of operating expenses, Moody's said.

The ratings are constrained by its geographic concentration, concentration of profit in one segment and slowing revenue growth, the agency said.

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