S&P Raises Alrosa’s SACP Above Russia’s Sovereign Rating

S&P Global Ratings, a global rating agency, has raised Alrosa’s stand-alone credit profile (SACP) to BBB and affirmed its long-term credit rating at BBB-, on par with Russia’s sovereign rating, with a stable outlook. The Russian and Yakutian governments have a controlling stake in the company.

Alrosa’s SACP was upgraded to BBB from BBB-. S&P considered the company’s leadership in the global diamond market, for which the agency has a strong fundamental outlook, as well as its resilient business model, and commitment to a balanced financial policy and transparency.

The agency noted that, while Alrosa, on a standalone basis, met the criteria for a credit rating above that of Russia, it believed that its overall rating was currently constrained by the country’s – at BBB-.

Alrosa noted that the stable outlook reflects S&P’s confidence that in the next two years the company’s balanced financial and dividend policies will help its financials remain at a comfortably high level amid a stable demand and a limited supply in the global diamond market.

Sergey Ivanov, CEO, Alrosa, said, “Thanks to our balanced financial policy, we have a safety cushion needed to ensure stable operation even in a weakening market. Alrosa’s success in implementing a strategy to overcome the crisis caused by suspended global diamond trade in mid-2020 serves as conclusive proof of our resilience.”

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