Moody’s upgrades ALROSA’s rating to Baa2

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Moscow, February 14, 2019 – Moody’s international rating agency has upgraded the long-term rating of PJSC ALROSA from Baa3 to Baa2 with a stable outlook. This decision was made following the upgrade of Russia’s sovereign rating from Ba1 to Baa3 and raised country ceilings for foreign currency debt to Baa2/P-2 from Baa3/P-3.

Along with ALROSA, the ratings of eleven more companies were upgraded in the similar way, nine of them are in the oil and gas, steel and mining sectors. According to Moody’s, these nine companies, including ALROSA, exhibit particularly strong credit metrics with a substantial share of foreign-currency revenue and strong liquidity profiles, which gives them a degree of resilience at times of sovereign stress. “All of these entities have robust business models, have low costs for their sectors and are visible players both in the domestic market and outside,” says the announcement by Moody’s.

Following the results of the nine months of 2018, ALROSA’s IAS-based earnings grew by 11% to RUB 238 billion. EBITDA grew by 29% to RUB 129 million, EBITDA margin increased by 7 percentage points to 54%. ALROSA’s net profit grew to RUB 82.5 billion (+33% YoY). The Company’s debt load compared to 2017 reduced from 0.9 to 0.2 net debt to EBITDA ratio.

Reference:
In July 2018, S&P international rating agency upgraded ALROSA’s credit rating to ВВВ- investment grade with a stable outlook.

This page was last updated on 15 February 2019 at 16.25