S&P Global has downgraded its rating of Tether to “Weak”, claiming its reserves have higher-risk assets.
The assessment also noted that Tether has provided only limited information on the creditworthiness of its counterparties.
S&P Global downgraded its ratings of the world’s largest stablecoin issuer, Tether, due to an increase in higher-risk assets in its reserves. S&P Global also argued that Tether’s reserves have limited disclosure and lead to market, credit, foreign exchange, and interest rate risks.
“Tether continues to provide limited information on the creditworthiness of its custodians, counterparties, or bank account providers.”
Further examination of the report found that the assessment specifically mentioned the assets in the reserves, including Bitcoin, which represents 5.6% of the USDT in circulation.
According to the analysis, this exceeds the 3.9% of the overcollateralization margin. Technically, this level of margin implies that USDT
