ASIA CREDIT CLOSE: Credits see active trading; GLP underperforms
HONG KONG, Jan 18 (IFR) - There was active trading in Asian credit markets on Wednesday as a string of new bonds continued to grab the attention of investors.
MILAN Dec 21 DBRS plans to take a decision on Jan. 13 on whether to cut its long-term rating on Italy's debt, a spokesman for the rating agency said, in a move that would raise the cost of borrowing central bank funds for the country's struggling lenders.
The Canadian agency said in early November it had postponed its decision on Italy until after a Dec. 4 referendum on constitutional reform. Italians rejected the constitutional changes, prompting Matteo Renzi to step down and Paolo Gentiloni to take over as prime minister.
The DBRS rating for Italy is the highest among those assigned by the major four credit agencies the European Central Bank uses to decide the discount applied to government bonds posted as collateral by lenders in refinancing operations.
If Italy lost its only remaining single 'A' rating, the ECB would have to increase the discount on bonds used as collateral, which would increase borrowing costs for Italian banks. (Reporting by Giulio Piovaccari, writing by Valentina Za, editing by Steve Scherer)
* Says continues to service Nordea in Norway in renewed service agreements which will run until December 31, 2018, with an option to extend for an additional two years
COLOMBO, Jan 18 The Sri Lankan rupee traded weaker on Wednesday due to importer dollar demand, after sales by foreign banks had helped the U.S. currency to edge up in the previous two sessions, dealers said.