OREANDA-NEWS. Fitch Ratings has today upgraded OAO MegaFon's ("Megafon") Issuer Default and senior unsecured ratings to "BB+" from "BB". The Outlook on the Issuer Default rating remains Stable.

The other ratings are affirmed at Short-term "B" and National Long-term "AA(rus)". MegaFon S.A.'s USD375m eurobond maturing in December 2009, which is guaranteed by Megafon, is upgraded to "BB+" from "BB".

"The upgrade reflects Megafon's achievement of positive free cash flow generation by end-2006, improvements in financial performance and debt composition and strengthening market position," says Nikolai Lukashevich, Director with Fitch's TMT team.