LONDON Dec 1 Rating agency DBRS said a 'Yes'
vote in Sunday's constitutional referendum in Italy would be the
best outcome for the country's credit rating, which is currently
under review with the threat of a downgrade.
DBRS' rating is key because a cut to Italy's A(low) rank
would mean its banks would have to pay more for European Central
Bank funding under current rules. DBRS has delayed its review
until after the referendum and must conclude it by Feb. 3, 2017.
"If a yes vote prevails, then we would assume (Prime
Minister Matteo) Renzi stays in and he has a mandate to continue
with his economic reform programme. That would most likely be
the best outcome from a credit standpoint," DBRS' co-head of
sovereign ratings Fergus McCormick told Reuters on Thursday.
"If the referendum is defeated by a very wide margin, and
then snap elections are called, this raises the political
uncertainty...We are concerned about investor sentiment in this
(Reporting by John Geddie; Editing by Marc Jones)