Moody's upgrades Alrosa

Moody's Investors Service said it upgraded Alrosa OJSC’s corporate family rating to Ba2 from Ba3, probability of default rating to Ba2-PD from Ba3-PD and baseline credit assessment to ba3 from b2 and Alrosa Finance SA's 7¾% $1 billion senior guaranteed notes due 2020 to Ba2 from Ba3. This concludes the review that began on Dec. 23, and the outlook is stable.

Moody's previously placed Alrosa’s ratings on review for downgrade in a general rating action when a total of 45 Russian non-financial corporate ratings were placed under review, reflecting the rapid deterioration in the operating environment in Russia, the heightened risk of a prolonged and acute economic downturn and corporate liquidity concerns.

Following a reassessment of the company’s credit profile, the upgrade reflects Moody's view that despite the inherent risks that remain in the Russian market, Alrosa has continued to perform in line with Moody's guidance for a positive rating action and to maintain a solid liquidity profile. The agency said the pricing environment for diamonds has remained stronger than previously factored in by Moody's, and as a major exporter of diamonds, Alrosa's financial performance will remain strong and potentially benefit from the ruble's recent sharp devaluation as well as diamonds destocking that took place in 2014 and will continue in 2015.

© 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.