Tassnief affirms Sulaiman Al Habib's 'AA- (pi)' rating

Logo of Dr. Sulaiman Al Habib Medical Services Group

Simah Rating Agency (Tassnief) assigned an initial long-term credit rating of AA- (pi) to Dr. Sulaiman Al Habib Medical Services Group and its subsidiaries.

In its report, Tassnief said the rating reflects the group’s strong credit history and very high creditworthiness, indicating minimal credit risk, though the risk profile may fluctuate slightly with economic or sectoral shifts.

The agency added that the rating underscores the company’s solid market position, low business risk, and strong financial track record. The assessment also highlights the favorable characteristics of the healthcare segment in Saudi Arabia, supported by stable demand and positive economic and demographic trends.

Tassnief noted that the healthcare services sector is generally considered low-risk due to its limited exposure to cyclical fluctuations. However, given the importance of accessible and affordable healthcare, the sector faces regulatory risks, in addition to other commercial challenges such as shortages in human capital and rising competition, particularly in the private segment.

The report pointed out that the significant geographic concentration of the group’s operations, especially in Riyadh, is expected to intensify competitive pressures among private healthcare providers.

Tassnief added that the group’s overall financial risk profile is supported by rising revenues and margins exceeding the sector average. Liquidity is reinforced by shorter collection cycles, strong internal cash flows, high debt-servicing capacity, and adequate cash reserves. Capital indicators remain strong, supported by a prudent leverage position.