S&P Global Ratings international rating agency has confirmed ALROSA’s BBB- investment grade credit rating with a “stable” outlook.

“The agency draws attention to the company’s consistently high profitability, its leading position in the diamond market and high-quality reserves, as well as prudent financial and dividend policies and high level of corporate governance,” ALROSA said when making the announcement.

The Company noted that the “stable outlook” description reflects the agency’s confidence in its “relatively fast recovery of credit metrics” in 2021-2022, after the weakening amid COVID-19 lockdowns. This ALROSA feels is due to the fact that the company acted “proactively” to limit the negative impact on its cash flows. “Among measures taken, S&P Global Ratings highlights downward correction of the company’s capex programme and production target,” ALROSA said.

“The confirmation of ALROSA's rating at the investment grade with a stable outlook during this challenging period for the global diamond industry underscores the company’s prudent approach to its financial and sales policy,” said Alexey Philippovskiy, ALROSA's Deputy CEO. “We have streamlined our production plans and capex programme, as well as reduced administrative costs. Our sales strategy focuses on restoring a supply/demand balance throughout the whole diamond pipeline. We expect the demand for rough diamonds starting to revive in mid-Q3.”

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