As a longtime Maker watcher (and often critic), I am absolutely shocked by this @SPGlobalRatings for Maker-Sky
1) B- is deep in junk territory, implying S&P assigns >12% chance of default within 3 years
2) Sky is reposting, which suggests lack of understanding what B- means
I will begin by saying I agree with S&P’s critiques around governance, asset quality, and regulatory risk. Directionally correct but too far. A company with a rating one notch HIGHER than Maker-Sky received has a pretty high risk of default.
Countries with B- include 🇦🇴, 🇵🇰, & 🇸🇻
Microstrategy is also at the B- level
I do not view USDS/DAI as a risk peer to those.
This is particularly an unfortunate rating because the "anchor rating" was BB, meaning that’s where S&P started and Maker-Sky was found to warrant being lowered 4 more notches to hit a B- rating.
Were I @SkyEcosystem I would be aggressively communicating with S&P as I tried to improve my rating, even though S&P says an upgrade is “highly unlikely in the next 12 months.”
Quite frankly, this is a disastrous rating for a major stablecoin.
If you believe USDS/DAI is a B- asset, you are probably not being paid for it. Bonds rated a notch higher pay 7%. That’s the risk-adjusted hurdle to clear with your USDS. Obviously the 4.75% savings rate doesn’t
@agusscapdevila @SPGlobalRatings They started at BB and lost 4 notches. I think that’s excessive, but also stablecoins rely on reputation and soundness. They need higher ratings than a regular DeFi protocol.
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