With credit cheap, American Water (AWK 0.45%) is increasing its financial flexibility. The water and wastewater utility announced today that it has reached an agreement with its lenders to increase its revolving credit facility $250 million to $1.25 billion, while also securing a 12-month extension on $1.1 billion originally due in October 2017.

American Water's press release states that the newfound finances will be used for "general corporate purposes," and the company has been hard at work with numerous small-scale acquisitions over the past few months.

The utility also announced that it has expanded its commercial paper program by $300 million to hit the $1 billion mark, allowing the company increased short-term liquidity.

"We are pleased to increase our financial flexibility during this constructive capital markets environment," said Senior Vice President and CFO Susan Story in a statement today.