S&P rates Almarai BBB-

S&P said it assigned a BBB- long-term and A-3 short-term issuer credit ratings to Almarai.

The ratings reflect the company's leading market positions in Saudi Arabia and the Gulf Cooperation Council region, well-known local brands, extensive distribution network, good product diversity and a high and relatively stable profitability for the sector against its high geographical concentration to Saudi Arabia, the agency said.

Almarai's key business strengths are its leading regional market shares in the relatively non-cyclical food and beverage industry with operations in dairy products, bakery, juices and poultry.

The stable outlook reflects a view that Almarai's operating performance should remain stable over the next two years with low revenue growth offset by solid pricing power and cost-saving initiatives, S&P said.

The group benefits from a portfolio of local and regional names with strong brand recognition backed notably by the high-quality assurance provided to local consumers through its vertically integrated supply chain, the agency said.

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