Compound Finance’s Treasury has just received a B- credit rating from S&amp;P Global Ratings, making the decentralized lending protocol the first-ever DeFi institutional offering to be rated by a major credit rating agency.
<h2><strong>S&amp;P Rates B- to Compound Treasury</strong></h2>
On Monday, DeFi, protocol Compound Treasury <a href="https://medium.com/compound-finance/compound-treasury-sp-credit-rating-897aff3a6f8c" target="_blank" rel="noopener">announced</a> that it received a credit rating of B- from S&amp;P Global Ratings. It is the first time an institutional DeFi platform offering has been rated by a traditional credit rating agency of the magnitude of S&amp;P Global Ratings.

The S&amp;P Global Ratings' investment suitability scale ranges from AAA (extremely strong) to D (in default).

A B- rating, hence means that the business is more vulnerable to adverse financial conditions, although it “currently has capacity to meet financial obligations,” S&amp;P Global Ratings clarified its explanation.
<h2><strong>Watershed for Moment Crypto Industry</strong></h2>
S&amp;P said Compound had a less-than-investment-grade rating owing to “weaknesses” including operational and convertibility risks between fiat money and stablecoins.

Still, Compound's founder Robert Leshner told a crypto publication that the rating represents "a watershed moment for our industry, and signals that DeFi is an equal peer to traditional financial markets, and ready for institutional capital."

Compound Treasury Receives Credit Rating in a Historic First for DeFi

Compound Treasury received a B- credit rating from S&P Global Ratings, making the DeFi platform the first-ever to be rated by a major credit rating agency.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Compound Treasury Receives Credit Rating in a Historic First for DeFi

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