MOSCOW, February 7 (RIA Novosti) - Fitch Ratings has upgraded MegaFon's issuer default and senior unsecured ratings to 'BB+' from 'BB' with a stable outlook.
MegaFon [RTS: MEGF] is Russia's third-largest mobile operator.
"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," said agency analyst Nikolai Lukashevich.
MegaFon was established in 2002. Its shareholders are Finnish-Swedish TeliaSonera (35.6%), Telecominvest (31.3%), CT-Mobile (25.1%), IPOC International Growth Fund Ltd. (8%).
The company posted revenue in January-September of $2.616 billion, a 55% rise on the same period of 2005. EBITDA gained 69% year-on-year in the reporting period to $1.320 billion. MegaFon's net profit in July-September saw an increase of 170% year-on-year.
