DBRS says referendum result negative for Italy's rating

[WorldNews]

Ratings agency DBRS said on Monday that Italy's rejection of a constitutional referendum and Prime Minister Matteo Renzi's imminent resignation was negative for its credit rank, which is currently under review with the threat of a downgrade. DBRS' rating is key because a cut to Italy's A(low) grade would mean its banks would have to pay more for European Central Bank funding under current rules. "This is certainly credit negative," DBRS' co-head of sovereign ratings Fergus McCormick told Reuters.

Continue reading...