S&P upgrades Alrosa

Standard & Poor's said it raised the long-term corporate credit rating on Alrosa Co. Ltd. to BB- from B+ and affirmed its B short-term corporate credit rating.

The agency also assigned an issue rating of BB- to the proposed notes of at least $1 billion to be issued by Alrosa Finance SA. The recovery rating of 4 indicates expectation of 30% to 50% recovery in the event of a payment default.

Proceeds will be used to refinance debt maturities due in 2010.

S&P also raised the issue ratings on Alrosa's other debt facilities to BB-. The recovery ratings on those facilities remain unchanged.

The outlook is stable.

"The upgrade reflects the combination of Alrosa's improved standalone credit profile to B and the revision of our assessment of the likelihood of extraordinary government support to 'moderately high,'" S&P analyst Andrey Nikolaev said in a statement.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.