According to ChainCatcher, citing Bloomberg, S&P Global Ratings has downgraded Tether's USDT stablecoin's ability to maintain its peg to the US dollar to the lowest rating, warning that a decline in bitcoin prices could lead to under-collateralization risks for the stablecoin.
On Wednesday, analysts at the rating agency lowered USDT's stability rating from "constrained" to "weak." S&P stated that this assessment "reflects the increased exposure to high-risk assets in USDT reserves over the past year," including bitcoin, gold, secured loans, and corporate bonds, while also taking into account the limited disclosure of information.