ECB opens door to accepting junk bonds as collateral

FRANKFURT (Reuters) - The European Central Bank relaxed a key lending criterion on Wednesday, opening the way for banks to post collateral that was downgraded to junk during the coronavirus crisis, it said after an unscheduled Governing Council meeting on Wednesday. The ECB said it would apply each asset's credit rating as of April 7, so banks can continue posting them in lending operations as long as the bond's rating remains in the upper tier of non investment grade assets. "This ensures that..