Credit rating agency S&P Global has downgraded Mountain Province Diamonds' long-term rating to CCC- from CCC, citing "challenging diamond market conditions" that have "significantly pressured" the company.
"With minimal available liquidity and relatively large financial obligations due within the next few months, we see a higher likelihood of a default or distressed restructuring in the near term," the agency said.
S&P observed a "sizable free operating cash flow deficit in 2025 and depleted liquidity" in the diamond miner’s operations. The negative outlook may be potentially downgraded within the next six months if the company defaults or announces a "distressed" debt restructuring.
"We don’t expect any meaningful cash-flow generation in the near term because of challenging diamond market conditions," S&P said in a statement.
The rating may be upgraded if the agency no longer views an inevitable default scenario for Mountain Province over the next six months, achievable by securing alternative financing, among other alternatives.
Theodor Lisovoy, Managing Editor, Rough&Polished
