Fitch upgrades Alrosa

Fitch Ratings said it upgraded Alrosa PJSC’s long-term issuer default rating and Alrosa Finance SA’s senior unsecured rating to BB+ from BB.

Alrosa’s short-term issuer default rating also was affirmed at B.

The outlook is stable.

The upgrades reflect expectations that Alrosa will maintain funds from operations gross adjusted leverage at a conservative level at or less than 2x on a sustained basis, Fitch said.

This is a result of Alrosa’s outperformance of conservative expectations over the past few years, driven by a weaker ruble and higher-than-expected diamond pricing, the agency said.

The ratings also reflect Alrosa’s strong operating profile as the largest diamond producer with 30% global diamond production share in 2015, Fitch said, and its cost leadership.

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