Analysts have applauded the move by Sonera, the Finnish telecoms operator, to reduce its debt burden via a rights issue, and put forward KPN, the Dutch telecom, as a prime candidate to follow in its footsteps.

High-grade credit research analysts at BNP Paribas said that they expect Sonera, which is 53% owned by the Finnish government, to hold on to its investment grade credit rating as a result of its debt-reduction manoeuvre.