Moody’s upgrades Alrosa to Ba1

Moody's Investors Service said it upgraded Alrosa PJSC's corporate family rating to Ba1 from Ba2 and probability of default rating to Ba1-PD from Ba2-PD.

The outlook is negative.

At the same time, Moody's confirmed the Ba2 corporate family rating and Ba2-PD probability of default rating of Holding Co. Metalloinvest and the Ba3 corporate family ratings and Ba3-PD probability of default ratings of SUEK plc and Nord Gold NV.

The outlook is stable on Metalloinvest's and SUEK's ratings, and positive on Nord Gold's ratings.

These actions conclude the reviews initiated on Jan. 22.

Moody’s said the upgrade of Alrosa's ratings primarily reflects the company's strengthened business and financial profile; Moody's expectation that its financial metrics will remain robust, despite demand and price volatility for diamonds; and the company's high profitability, positive free cash flow generation and strong liquidity.

The confirmations of Metalloinvest, Nord Gold and SUEK reflect the companies' strong business profiles; low-cost position, which supports their competitiveness in international markets; high profitability; solid/adequate liquidity; and Moody's expectation that their financial metrics will remain commensurate with their ratings on a sustainable basis despite the volatility in prices for commodities, the agency said.

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