...The rating affirmation reflects Russia-based PJSC ALROSA's strong business profile as the leading global rough diamond producer, its large reserve base, low cost position and capex flexibility, which allows the company to navigate weaker market conditions. ALROSA's financial position is robust, underpinned by several years of debt reduction and the company 's public commitment to conservative leverage metrics, which have been sustained at a very low level over the past four years. A cash flow-based dividend policy supports free cash flow (FCF) generation, but FCF can turn negative intermittently as dividends are paid with a time lag, i.e. afte r the end of the half year for the accounting period. Nevertheless, leverage remained at low levels in 2019, within Fitch Ratings' guidance. ALROSA's rating is constrained by its single-product profile, its concentration of mining operations in Russia, and its exposure to a single cyclical end-market (retail jewellery). ALROSA is rated top- down minus...
