Text (SM): 0/4. ; {Tap}: Prevent the next 1 damage that would be dealt to target creature or player this turn. ; Put a -1/-1 counter on ~this~: Untap ~this~.
With the second ability, the -1/-1 counter is put on as a cost. If adding the counter kills the creature, it go to the graveyard immediately after paying the cost and before you can do anything else. [Shadowmoor FAQ 2008/04/21]