Moody’s Investors Service has affirmed the Baa2 long-term issuer rating of ALROSA PJSC, the outlook remains stable. The agency believes the company will retain its resilient financial position and cash flows.
The rating agency notes that the best in class profitability, prudent financial policy, and the leading position in the global market allow ALROSA maintaining high credit metrics and keeping access to domestic and international debt capital markets despite softer demand caused by a negative effect on leading economies from COVID-19.
Moody’s analysts assume that the rough diamonds market starts recovering from Q4 2020 as lockdowns and “stay-at-home” regimes are gradually lifted by the governments around the globe and both jewellery retailers and cutters and polishers resume their operations.
Moody’s has upgraded ALROSA’s rating to Baa2 from Baa3 in early 2019, arguing that the company’s financial stability is robust despite the sovereign stress and a downgrade of Russia’s sovereign rating.
Earlier in June 2020 Fitch Ratings and S&P Global Rating have confirmed ALROSA’s ratings at BBB- investment grade with both outlooks stable.
Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.
