Fitch: Megafon outlook positive

Fitch Ratings said it affirmed OAO MegaFon's BB+ long-term issuer default and senior unsecured ratings and changed the outlook to positive from stable.

The change reflects expectations that Megafon shareholders will ultimately be able to put in place a sustainable dividend policy that will be consistent with the company's creditworthiness, according to the agency.

MegaFon SA's $375 million eurobond due December 2009, which is guaranteed by Megafon, is affirmed at BB+.

"A key corporate governance concern has been that shareholders may decide to upstream too much cash out of the company. However, we do not believe shareholders will take any actions that could seriously jeopardize the value of their investments in the company," Nikolay Lukashevich, a senior director at Fitch, said in a statement.

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