Fitch revises Alrosa to positive

Fitch Ratings said it revised PJSC Alrosa's outlook to positive from stable and affirmed its long-term issuer default rating at BB+.

Alrosa Finance SA's senior unsecured rating was affirmed at BB+.

Fitch said the revised outlook reflects its reassessment of the linkage between Alrosa and the Russian Federation (BBB-/Positive) under Fitch's government-related entities rating criteria.

Specifically, Alrosa’s linkage with the state would justify a single-notch uplift to its standalone credit profile, which in the agency’s view is commensurate with a BB+ rating.

However, the methodology caps the possible uplift at government issuer default rating minus 1, i.e. BB+. An upgrade of Russia's issuer default rating would lift the current cap to BBB-, Fitch explained.

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