MOSCOW, February 6 (RIA Novosti) - International ratings agency Fitch upgraded Russian cell phone operator MegaFon's senior unsecured foreign currency rating one notch from BB- to BB with a stable outlook, the agency said in a statement Monday.

The agency affirmed the company's short-term rating at B, upgraded its dollar-denominated bond issue one notch to BB, and its ruble-denominated bond issue one notch to AA(rus).

"The upgrade reflects Megafon's strong financial performance," Nikolai Lukashevich, Director with Fitch's TMT team, said.

"The ratings take into account that Megafon is an established nationwide mobile operator in Russia rapidly increasing cellular coverage in its licensed territories. Its subscriber base and revenue have been rapidly growing, by 67% in 2005, following a 119% increase in the year before while revenue was up 82% in 2004. Growth is likely to extend into 2006 and beyond, based on the continued expansion of the Russian mobile market," Fitch said.