What is an RD credit rating?
Short-hand for 'restricted default', RD is a credit rating which can be given to a company by Fitch if it's defaulted on certain financial obligations, but is still trading and hasn't entered into insolvency proceedings.
It's similar to the 'selective default' (SD) rating given out by Standard & Poor's.
Where have you heard about RD credit ratings?
You may hear investors talk about them in relation to D credit ratings. While a D rating suggests an entity will fail to meet most, or all, of its financial obligations as they become due, a company might receive an RD score if it's only likely to default on certain debts.
What you need to know about RD credit ratings.
The credit rating given to a company or government can impact on its ability to borrow money, flagging up the amount of risk it's likely to pose investors. Higher-risk ratings such as RD may not appeal as much to general investors as investment-grade ones (those classed as BBB- or above).
Like the SD rating, RD is generally seen to be outside the main credit ratings table, which runs from AAA at the very top all the way down to D at the very bottom.
Find out more about RD credit ratings.
For more information on how the ratings table works, see credit rating agency.
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