S&P Global Ratings on July 19 upgraded Russian diamondminer PJSC ALROSA'slong-term corporate credit rating to BB from BB- and affirmed its short-termrating at B, with a positive outlook.

The ratings action is driven by the company's demonstrationof strong margins and solid cash flow generation in 2015 as well as improvedoperating efficiency the first quarter this year, supported by the weakerRussian ruble.

The positive outlook reflects S&P's view that thecompany's beneficial cost position, high profitability, strongly positive freecash flow generation and sizable market share could strengthen its ability toendure volatile market conditions.

Meanwhile, ALROSA's ratings could be lifted further if itcontinues to demonstrate solid operating performance and strong positive cashflow generation.

S&P added that the outlook could be revised to stable ifthe company's operating performance becomes more volatile than forecast due toweaker market conditions or company-specific factors.

S&P Global Ratingsand SNL Metals and Mining are both owned by S&P Global Inc.