S&P affirms Alrosa

Standard & Poor's said it assigned its B short-term corporate credit rating to the Russian diamond mining company Alrosa Co. Ltd. and its B short-term rating to the group's proposed commercial paper program, which is expected to amount to about $300 million.

At the same time, S&P affirmed its B long-term corporate credit rating on Alrosa and its B senior unsecured debt rating on related entity Alrosa Finance SA.

The outlook is stable.

S&P said the long-term ratings on Alrosa continue to be constrained by the group's heavy capital expenditure needs, which result in negative free cash flow generation and significant leverage. This is somewhat mitigated by Alrosa's position as the second-largest (by value) diamond-mining company in the world and favorable conditions in the relatively stable global diamond market.

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