ACRA assigns ALROSA the highest credit rating of AAA

Moscow, 3 June 2024 – ACRA, one of the leading rating agencies, has assigned ALROSA a credit rating of AAA(RU), which shows the highest level of creditworthiness on the national scale, with a stable outlook. This marks the first time ACRA has assigned a credit rating to ALROSA.

The credit rating given to ALROSA is based on its standalone creditworthiness assessment (SCA) of “aaa”, as noted in ACRA’s press release.

ACRA has acknowledged ALROSA’s production efficiency, robust resource base, and low operational risk exposure.

ALROSA’s “very strong” financial risk profile assessment reflects the company's scale of operations, high profitability, and minimal leverage in the forecast period. The company's liquidity is described as superior due to the availability of internal and external funding and a comfortable maturity schedule. The robust cash flow estimates are associated with a high free cash flow yield and a moderate capex to revenue ratio.

ACRA has also highly rated ALROSA's corporate governance level, attributing it to the company's strong management structure, effective risk management system, and a high degree of financial transparency.

Pavel Marinychev, ALROSA’s CEO:

“We are delighted that the solid financial standing of ALROSA has been recognized by yet another esteemed rating agency. This independent assessment is particularly valuable to us in light of the external challenges we are navigating. I am confident that the ACRA analysts' opinion will serve as an important additional benchmark for our shareholders, partners, and the broader financial community."

The full version of ACRA's press release is available on the agency's website.