The credit rating of PJSC “ALROSA” (hereinafter, ALROSA, the Company, or the Group) is determined by its aa standalone creditworthiness assessment (SCA), the medium level of support to the Company from the state, and a low degree of dependence of the state and the Group on homogeneous risk factors. The Company’s SCA is driven by the strong assessment of the operational profile, which reflects the Group’s leading positions in the world in terms of rough diamond production and available resources and the strong corporate governance; as well as the large business size, very high profitability, low leverage, high interest payment coverage, very strong liquidity, and weak assessment of the cash flow.
ALROSA is the largest rough diamond producer, and the global leader in diamond production and reserves. The Company is focused on the exploration, mining and sale of diamonds. The Group’s mining assets located in the Republic of Sakha (Yakutia) and the Arkhangelsk Region include more than 20 primary and alluvial diamond deposits.
KEY ASSESSMENT FACTORS
The medium level of state support, as per ACRA’s methodology, is determined by the medium assessments of the sub-factors Functional Exclusivity and Role in the Economy and Reputational Risks and high assessments of the sub-factors Social Role and Ownership, Control and Regulation. ALROSA is almost a monopoly in a relatively narrow segment of the economy. The Company is a major employer and the largest taxpayer in the Republic of Sakha (Yakutia). The state exercises strategic control over the Company. ALROSA’s supervisory board is largely composed of representatives of the Russian Federation and representatives of the Republic of Sakha (Yakutia).
Reducing production and sales volumes to balance stocks in the cutting sector. In 2025, the global diamond mining industry was characterized by a continued low level of prices due to lower purchases of rough diamonds by cutting companies on the backdrop of excessive stocks. In response to this, the Company continued reducing extraction volumes and carrying out its Price-Over-Volume strategy. Experts predict that the decline in the volume of supply will facilitate a recovery of global price indices in the medium term. Price dynamics in the global rough diamond market will also be supported by growing demand for luxury goods and jewelry in the main polished diamond consumption markets, such as the United States, India, China, and the Persian Gulf countries.
Very strong market position and strong business assessment. ALROSA is one of the two main diamond mining companies in the world, ensuring over 30% of global production and outpacing its main competitor, De Beers, in terms of this indicator. The Agency expects this share to remain largely unchanged in the medium term. ACRA notes the Company’s strong positions in such sub-factors as Costs and Resource Base Sufficiency: given the Company’s current production volumes, its proven resources will last for more than 30 years of operations. The sub-factor Concentration on One Field also received a high score because the Company’s largest deposit accounts for less than 30% of the consolidated production volume.
The Agency highly assesses the Group’s corporate governance quality due to the strong management structure, effective risk management system, and high financial transparency. ACRA also notes ALROSA’s conservative financial policy: in particular, in 2025 in view of the negative cash flow the Company did not pay dividends.
Strong financial profile. According to ACRA’s estimates, the Company’s FFO before interest and taxes margin continued to decline in 2025 to 28% (vs. 35% in 2024), but the margin is still very high per the Agency’s criteria, and ACRA expects it to recover to above 30% in 2026–2028. The Company’s leverage is low (the weighted average ratio of total debt to FFO before net interest payments for 2023–2028 is 2.0x) and interest payment coverage is high (the weighted average ratio of FFO before net interest payments to interest payments is 5.3x). Liquidity continues to be very strong given the internal and external financing sources available to the Company and its comfortable debt repayment schedule. The weak assessment of cash flow is associated with significant capital expenditures, which puts pressure on the free cash flow (FCF) margin.
KEY ASSUMPTIONS
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Production and sales volumes in line with the Company’s business plan for the forecast period;
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Capital expenditures in line with the business plan;
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Absence of significant additional volumes of financing.
POTENTIAL OUTLOOK OR RATING CHANGE FACTORS
The Stable outlook assumes that the rating will highly likely stay unchanged within the 12 to 18-month horizon.
A negative rating action may be prompted by:
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Significant decline of production and/or sales volumes;
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Weighted average FFO before fixed payments and taxes declining below 30%;
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Weighted average ratio of total debt to FFO before net interest payments exceeding 3.5x and weighted average ratio of FFO before net interest payments to interest payments declining below 5.0x;
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Capital expenditures to revenues ratio exceeding 30% and weighted average FCF margin falling below -5.0%.
RATING COMPONENTS
SCA: aa.
Support: state.
ISSUE RATINGS
Bond of PJSC “ALROSA”, series 001P-01 (RU000A109L49), maturity date: September 2, 2028, issue volume: RUB 45 bln — АAА(RU).
Rationale. The issue is senior unsecured debt of the Company. Due to the absence of either structural or contractual subordination of the issue, ACRA regards it as equal to other existing and future unsecured and unsubordinated debt obligations of the Company in terms of priority. As per ACRA’s methodology, the simplified approach was applied to determine the credit rating, according to which the recovery rate for the issue corresponds to category II, and therefore the credit rating of the issue is equal to the credit rating of the Company — AAA(RU).
REGULATORY DISCLOSURE
The credit ratings have been assigned to PJSC “ALROSA” and the issue of PJSC “ALROSA” based on the following methodologies: the Methodology for Assigning Credit Ratings to Non-Financial Corporations under the National Scale for the Russian Federation to calculate the SCA and determine the credit rating and the credit rating outlook of PJSC “ALROSA” under the national scale for the Russian Federation, Methodology for Assigning Credit Ratings with External Support to determine factors of external influence, Methodology for Assigning Credit Ratings to Financial Instruments under the National Scale for the Russian Federation to determine the credit rating of the bond issue under the national scale for the Russian Federation and the Key Concepts Used by the Analytical Credit Rating Agency within the Scope of Its Rating Activities to ensure consistent and uniform application of ACRA’s methodologies, rating scales, models, and key rating assumptions.
The credit rating of PJSC “ALROSA” assigned under the national scale for the Russian Federation was published by ACRA for the first time on June 4, 2024. The credit rating of the issue (ISIN RU000A109L49) assigned under the national scale for the Russian Federation was published by ACRA for the first time on September 23, 2024.
The credit ratings of PJSC “ALROSA” and the issue (ISIN RU000A109L49) were last published on May 29, 2025.
The credit rating of PJSC “ALROSA” and its outlook, as well as the credit rating of the bond issue (ISIN RU000A109L49), are expected to be revised within one year.
The credit ratings were assigned based on data provided by PJSC “ALROSA”, information from publicly available sources, and ACRA’s own databases. The rating analysis was performed using the IFRS accounting (financial) statements of PJSC “ALROSA” as of December 31, 2025.
The credit ratings are solicited and PJSC “ALROSA” participated in their assignment.
In assigning the credit ratings, ACRA used only information, the quality and reliability of which were, in ACRA’s opinion, appropriate and sufficient to apply the methodologies.
ACRA provided the following additional services to PJSC “ALROSA”: assignment of an ESG rating from July 11, 2024 to the present; information and reference services (seminars and workshops) from April 16, 2025 until April 17, 2025.
No conflicts of interest were discovered in the course of credit rating assignment.
