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Viewing report
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ALROSA Co. Ltd.
Standard & Poors, March 2011
Abstract
Substantial ongoing and extraordinary government support. Favorable market position, underpinned by high-quality diamond reserves. Concentrated diamond industry structure and high barriers to entry, which support profitability. Highly-leveraged capital structure. Capital-intensive, commodity-like nature of the industry. Volatile global demand for rough diamonds. The ratings on Russian diamond miner ALROSA Co. Ltd. (Alrosa), which is 50.9% owned by the Russian central government and 40% by local governments, are based on the company's stand-alone credit profile of 'b' with an additional two notches of uplift to reflect extraordinary state support. The uplift is based upon our opinion that there is a 'moderately high' likelihood that the government of the Russian Federation (foreign currency BBB/Stable/A-3; local currency BBB+/Stable/A-2; Russia national scale 'ruAAA') would provide
Article Type:FULL
Companies mentioned in this report are: ALROSA Co. Ltd.
Action: Review
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