S&P downgrades USDT’s dollar peg rating to lowest score
Overview
S&P Global Ratings has downgraded Tether’s USDt to its lowest stability rating, which has raised concerns regarding its ability to maintain its dollar peg. In response, Tether has labeled the report as “misleading.”
Details of the Downgrade
S&P Global Ratings, a prominent credit rating agency, has taken the significant step of downgrading Tether’s USDt. This action reflects an assessment of the stablecoin’s stability and its capacity to maintain the pegged value to the US dollar. The downgrade has prompted discussions surrounding the implications for the wider market and the confidence of investors in stablecoins.
Tether has publicly responded to the downgrade by asserting that the report from S&P is misleading. This characterization suggests that Tether disputes the validity of the concerns raised by the rating agency regarding its dollar peg.
Impact on the crypto market
- The downgrade may lead to increased scrutiny of stablecoins and their backing mechanisms.
- Investor confidence in Tether and potentially other stablecoins might be affected, influencing market dynamics.
- The situation could prompt regulatory responses or calls for greater transparency within the stablecoin sector.
- Market participants may reassess their risk exposure to USDt and similar assets following the downgrade.
- The response from Tether could lead to a debate on the reliability of credit ratings in the cryptocurrency space.
Updated: 11/27/2025, 3:26:51 PM
