S&P Global Ratings today raised its long-term corporate credit rating on the ALROSA PJSC to 'BB' from 'BB-' and affirmed the short-term rating at 'B'. The outlook is positive.

The rating action reflects ALROSA's improved operating efficiency supported by the weaker Russian ruble, which has boosted the company's profitability and cash flow generation.

The business risk profile on the company continues to be supported by its very strong market position globally and its large and productive diamond deposits base.

The recent sale of a 10.9% stake in ALROSA by the government as the first step of a larger GRE privatization program has not changed S&P’s view of the state support available for ALROSA. This view is supported by the fact that the
federal government together with the regional government of Sakha continue to exercise control over the company.

The positive outlook reflects the view that ALROSA's beneficial cost position, high profitability, strongly positive free cash flow generation, sizeable market share, and strong credit metrics might help the company to better withstand the volatility of the diamond industry and achieve a higher rating.