KPN, which is preparing a €2bn ($1.8bn) bond issue, will struggle to maintain even the very lowest investment grade ratings, according to analysts.

The Dutch telecommunications company is rated Baa2 by Moody's Investors Service and BBB&#43 by Standard & Poor's. KPN is protected from being sub-investment grade by either two notches - Moody's rating of Baa3 before the first sub-investment grade rating of Ba1 - or three notches - S&P ratings of BBB and BBB- before BB&#43.