S&P Downgrades Tether Stablecoin Rating: Bitcoin Exposure Exceeds Safety Margin

Credit rating agency S&P Global has downgraded Tether’s USDT stability assessment to the lowest possible score of 5, signifying a significant risk. The agency cited rising exposure to high-risk assets within Tether reserves and inadequate transparency as key drivers for this downgrade. Specifically, S&P highlighted that the proportion of Bitcoin in USDT reserves now exceeds the allowed safety margin by nearly 6%, leaving the stablecoin vulnerable to potential price drops.