June 10, 2020 - S&P Global Ratings international rating agency 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.
A stable outlook reflects the agency’s confidence in relatively fast recovery of credit metrics in 2021-2022 after the weakening amid COVID-19 lockdowns, as 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 program and production target.
“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. We have streamlined our production plans and capex program, 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," said Alexey Philippovskiy, ALROSA's Deputy CEO.