The new credit lines, which replaces existing facilities and will be used for working capital, indicate banks will lend money to large firms with strong balance sheets but do not necessarily signal a loosening in credit conditions, analysts said.

'SingTel is one of the few companies with strong credit standing,' said DMG & Partners analyst Terence Wong in Singapore. 'It shows the market is still open for bigger companies.'

A Sydney-based analyst, who declined to be named, said the credit lines will ensure SingTel remains liquid even after it pays its half-year dividend and gives the firm a stronger bargaining position if it chooses to tap the commercial paper market.

'The market is open to the likes of SingTel and Telstra but who else it's open to remains to be seen,' he said.

SingTel, which owns Optus in Australia as well as stakes in several Asian mobile phone companies, did not disclose the terms of the credit lines.

Its spokesmen were not immediately available for comment.

Standard & Poor's rates SingTel and Optus 'A+', while Moody's Investors Services rates SingTel 'Aa2' and Optus 'Aa3'.

SingTel, South-east Asia's largest telco, on Friday announced the signing of two credit facilities.

The first loan is a $350 million facility with Bank of Tokyo-Mitsubishi UFJ, DBS Bank and Oversea-Chinese Banking Corp that will mature in November 2013.

The other is a A$725 million (S$727.6 million) 3.5-year syndicated revolving credit facility with Australia & New Zealand Banking Group (ANZ.AX), Bank of Tokyo-Mitsubishi UFJ, Citibank, Commonwealth Bank of Australia and Westpac Banking Corp that will mature in April 2012.

The transaction has no material impact on the earnings per share or the net tangible assets in the current financial year ending March 2009, SingTel said in a statement. -- REUTERS