S&P Cuts Mountain Province Credit Rating

(IDEX Online) - Mountain Province's credit rating has been downgraded by S&P, to reflect "a higher likelihood of a near-term default or debt restructuring".

The Canadian diamond miner is facing significant debt maturities and financial obligations that it has yet to address, the global ratings agency said in an update published on 23 April.

S&P has lowered its long-term issuer credit rating from CCC to CCC-, which indicates "high vulnerability to non‑payment".

It said challenging conditions in the diamond market had significantly pressured Mountain Province's financial performance, and that it was struggling to address a CAD 33 million (USD 24 million) working-capital facility and a USD40 million bridge credit facility due today, 30 April.

Mountain Province, which operates the Gahcho Kue mine, in the Northwest Territories as a joint venture with De Beers, posted a net loss of CAD 279.5 million (USD 200.2 million) for FY 2025.

It was the result, it said, of a significant deterioration in market conditions, compounded by the planned processing of lower-grade stockpiles.

Mountain Province has cited challenging conditions in the diamond market - among them U.S. tariffs on Indian manufacturing, weak U.S. demand, rising lab-grown competition, excess rough supply - as having significantly pressured its financial performance.

S&P said in its analysis: "We believe the company is facing a liquidity shortfall in the near term, which increases the likelihood of a default or distressed debt restructuring within the next few months."

It also cautioned that the rating could be lowered again if Mountain Province announces a debt restructuring that it considers to be distressed, or if it misses any principal or interest payments.