From the latest public standard draft, http://www.open-std.org/jtc1/sc22/wg21/docs/papers/2012/n3337.pdf:
8.5.3 References [dcl.init.ref] 1 A variable declared to be a T& or T&&, that is, “reference to type T” (8.3.2), shall be initialized by an object, or function, of type T or by an object that can be converted into a T. [ Example:
int g(int);
void f() {
int i;
int& r = i; // r refers to i
r = 1; // the value of i becomes 1
int* p = &r; //p points to i
int& rr = r; // rr refers to what r refers to, that is, to i
[...]
So while the sentence may leave one uncertain (the part relevant here is probably that a reference "can be converted into a T"), the example (the last line is relevant here) is unambiguous.