The rating agency notes that the best in class profitability, prudent financial policy and the leading position in the global market allow ALROSA maintaining high credit metrics and keeping an access to domestic and international debt capital markets despite softer demand caused by a negative effect on leading economies from COVID-19.
Moody’s analysts assume that the rough diamonds market starts recovering from Q4 2020 as lockdowns and "stay-at-home" regimes are gradually lifted by the governments around the globe and both jewellery retailers and cutters and polishers resume their operations.
Moody’s has upgraded ALROSA’s rating to Baa2 from Baa3 in early 2019, arguing that the company’s financial stability is robust despite the sovereign stress and a downgrade of Russia’s sovereign rating.