Tether CEO rebuts S&P assessment…"Error in not reflecting total assets and earnings"
Summary
- S&P Global reportedly downgraded Tether's ability to maintain its dollar peg.
- Tether's CEO rebutted that S&P's assessment was an error for not reflecting Tether's excess equity and basic income.
- The S&P downgrade increased uncertainty, but Tether says its actual financial soundness was underestimated.
S&P Global downgraded the rating of Tether (USDT)'s ability to maintain its dollar peg, and Paolo Ardoino, Tether's chief executive officer (CEO), has rebutted the assessment.
According to Cointelegraph on the 1st (local time), Ardoino said, "As of the end of the third quarter, Tether has about $7 billion in excess equity and $184.5 billion in reserves, and cumulative profits of about $23 billion are also included in the group's equity," adding, "S&P did not consider these additional equity and U.S. Treasury yields, which alone generate roughly $500 million in base income per month."
S&P's downgrade has raised concerns and increased uncertainty about Tether among some market participants, but Tether insists the assessment is an overly reduced judgment that does not reflect actual financial soundness.
Earlier, S&P had downgraded USDT's ability to maintain its dollar peg to 'weak', which is known to be the lowest rating in that rating system.
Suehyeon Lee
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