{"id":91482,"date":"2025-11-27T12:19:06","date_gmt":"2025-11-27T09:19:06","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=91482"},"modified":"2025-11-27T12:21:51","modified_gmt":"2025-11-27T09:21:51","slug":"sp-cuts-tethers-stability-score-to-the-lowest-tier","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/sp-cuts-tethers-stability-score-to-the-lowest-tier\/","title":{"rendered":"S&P cuts Tether\u2019s stability score to the lowest tier"},"content":{"rendered":"

Ratings agency S&P Global Ratings downgraded<\/a> the stability assessment of Tether<\/a> to level five \u2014 the lowest on its own scale.<\/p>\n

Analysts attributed the move to a rising share of risky assets in the backing of the stablecoin<\/a> USDT. In their view, the current capital buffer may be insufficient to absorb losses if bitcoin\u2019s price falls.<\/p>\n

Bitcoin currently accounts for about 5.6% of the stablecoin\u2019s circulating supply. That exceeds the 3.9% buffer recorded in the attestation<\/a> for the third quarter. A sharp drop in bitcoin, combined with losses on other high-risk positions, threatens the stablecoin with losing full backing.<\/p>\n

The share of risky assets in Tether\u2019s reserves rose to 24% as of 30 September, from 17% a year earlier. In this bucket S&P includes bitcoin, gold, secured loans, corporate bonds and investments with limited disclosure. The agency also noted insufficient transparency on the issuer\u2019s custodians and partners.<\/p>\n

A significant portion of USDT\u2019s reserves remains in short-term US Treasury bills. However, the asset-storage structure does not protect investors to the standards of regulated markets.<\/p>\n

Reserves are not segregated from the company\u2019s own funds, and access to redemptions remains cumbersome. The score could improve if the share of risky instruments falls and if details on the creditworthiness of banking partners are disclosed.<\/p>\n

Ardoino outraged<\/h2>\n

Tether CEO Paolo Ardoino rejected the agency\u2019s conclusions. He said the company \u201cwears your loathing with pride.\u201d<\/p>\n

\n

to S&P regarding your Tether rating: <\/p>\n

We wear your loathing with pride.<\/p>\n

The classical rating models built for legacy financial institutions, historically led private and institutional investors to invest their wealth into companies that despite being attributed investment grade\u2026<\/p>\n

\u2014 Paolo Ardoino \ud83e\udd16 (@paoloardoino) November 26, 2025<\/a><\/p><\/blockquote>\n