PANews reported on November 26th that, according to The Block, S&P Global downgraded Tether's USDT stability rating to "5" (the weakest level), citing its increased proportion of risky assets, insufficient information disclosure, and the inability of current reserves to absorb the impact of a sharp drop in Bitcoin prices. Currently, approximately 5.6% of USDT's issuance is backed by Bitcoin, exceeding its 3.9% reserve buffer. S&P pointed out that if high-risk assets fall simultaneously, USDT may face the risk of insufficient collateral. As of September 30th, Tether's risky asset ratio had risen to 24%.
S&P Global downgraded USDT's stability rating to the lowest level, warning of the risks associated with Bitcoin exposure.
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