Moody’s Assigns Sky B3 Rating, First Credit Assessment for a Stablecoin Project

Moody’s Ratings has assigned a B3 credit rating to stablecoin project Sky.

Sky Frontier Foundation, the organization behind Sky, announced on Oct. 7 that Moody’s assigned it a B3 rating. The outlook is stable. It marks the first time Moody’s has issued a credit rating to a stablecoin issuer.

Sky had previously received a B- credit rating from S&P Global. According to the foundation, Sky has become the first stablecoin project to receive formal credit ratings from both agencies.

The B3 rating is speculative grade and below investment grade. Under Moody’s rating scale, a B rating indicates high credit risk.

A key factor in Moody’s assessment was the size of the project’s reserves, known as the Sky Reserve. The foundation said Sky governance has introduced a two-stage buyback and reserve framework to strengthen the project’s treasury management and set aside part of net income for reserves.

Greg Favers, Sky Frontier Foundation’s head of global capital markets, said the organization is aware of the issues Moody’s identified and will continue to support efforts to expand reserves.