S&P Global has downgraded Tether's USDT stability rating to the lowest level, citing increased exposure to risky assets and insufficient information disclosure. The rating was lowered to "5," the weakest level, due to concerns that Tether's current reserves may not withstand a significant drop in Bitcoin prices. Currently, 5.6% of USDT's issuance is backed by Bitcoin, surpassing its 3.9% reserve buffer. S&P highlighted that Tether's risky asset ratio had climbed to 24% as of September 30th, raising concerns about the adequacy of its collateral. The agency warned that simultaneous declines in high-risk assets could lead to insufficient collateral for USDT, posing potential risks to its stability.