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If your code is covered with tests, why would you be afraid of rewriting it?

Hah!

You bet! Every chance I get. If I am in a section of code for some sort of change, I will definitely take the opportunity to update/improve the current state of affairs. Doesn't mean you need to go through and rewrite the entire thing.

For example, a recent requirement of mine was to revise some xml processing to create sitemaps. As part of the changes, I rewrote the logic to use xml LINQ (c#) and the resulting function is much cleaner, and will be easier to maintain going forward.

It also makes routine maintenance changes more palatable.

If the semantics are identical, you don't need to rewrite them, a good IDE will do that for you with a simple code reformat whenever you happen to be doing work in that file.