Fitch affirms MegaFon

Fitch Ratings said it affirmed OAO MegaFon's long-term foreign-currency issuer default ratings at BB+ and short-term foreign-currency issuer default rating at B, along with its national long-term rating at AA(rus) and foreign-currency senior unsecured ratings at BB+. MegaFon SA's $1.5 billion loan participation notes umbrella program, which is guaranteed by MegaFon, is affirmed at BB+.

The agency also said it assigned MegaFon a long-term local-currency issuer default ratings at BB+ and local-currency senior unsecured at BB+.

The outlook is positive.

The positive outlook reflects an expectation that MegaFon shareholders will be able to adopt a sustainable dividend policy and/or establish leverage targets that would be consistent with a higher rating, Fitch said.

The company's financial and operating performance has been strong for the rating level and has generally demonstrated good resilience in the challenging economic environment in Russia, the agency said.

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