S&P Global Ratings downgraded Tether's stability assessment to the lowest level.

Odaily Planet Daily reports that S&P Global Ratings downgraded Tether's stability assessment to "5," the weakest level in the rating system, citing an increase in riskier reserve assets. S&P warned that USDT no longer has sufficient buffer to absorb a decline in Bitcoin's value. S&P stated that Bitcoin currently accounts for approximately 5.6% of the total circulating supply of USDT, higher than the approximately 3.9% reserve buffer implied in Tether's latest Q3 financial report released at the end of October. This means that a significant drop in Bitcoin's price, especially coupled with losses in other high-risk assets, could lead to insufficient collateral for USDT. (The Block)