KPN, the Dutch telecoms company recently upgraded by Moody's and which wants to expand its German operations, has made the most of its improving creditworthiness to renegotiate a €1.75bn ($1.88bn) credit facility.

Last week the group replaced its facility maturing in 2004 with a €1.5bn three-year facility maturing in 2006. There is also a one-year extension option on the maturity that KPN can exercise if its ratings stay above a certain level, giving it an extra year to tap the facility.