S&P Global: Downgrades USDT's ability to be pegged to the US dollar to the lowest rating.
SP Global Ratings has downgraded Tether's USDT stablecoin's ability to maintain its peg to the US dollar to the lowest rating and warned that a decline in Bitcoin prices could lead to undercollateralization risks for the stablecoin.
On Wednesday, the rating agency's analysts downgraded USDT's stability rating from "Limited" to "Weak." SP stated that this assessment "reflects the increased exposure to high-risk assets in USDT's reserves over the past year," including Bitcoin, gold, secured loans, and corporate bonds, while also considering the limited disclosure of information.
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