Rating Agency S&P: DeFi Protocol Sky Credit Rating on Par with Congo Debt, at a Lowly B-

August 8: The rating agency S&P Global carried out its initial credit rating on the DeFi protocol Sky (formerly known as MakerDAO). It assigned a B- rating to Sky, which is on a par with the sovereign debt rating of the Republic of the Congo and is classified as a high-risk "speculative grade." S&P pointed out that the current risks of Sky mainly include high depositor concentration, excessive reliance on the founder Rune Christensen, and the uncertainty of DeFi regulation. However, it also recognized that Sky has had low credit losses and stable revenue since 2020. This rating does not cover the governance token SKY and only pertains to USDS, DAI, and their savings derivatives. Sky is the fourth-largest stablecoin issuer on Ethereum, with a circulating supply of $7.9 billion. Sky responded that this rating is the first step towards integrating with the traditional financial system. In the future, as DeFi awareness grows, the ratings may be upgraded. Analysts believe that although this is not an investment-grade rating, it indicates that mainstream rating agencies are starting to carefully evaluate the credit conditions of DeFi protocols. (DL News)