Where have you heard about SD credit ratings?

What is an SD credit rating?

A credit rating that can be given to a company by Standard & Poor's, if it's deemed to have selectively defaulted on certain financial obligations but is still likely to meet its other commitments in good time.

Whereas a D credit rating suggests an entity will fail to meet most, or all, of its financial obligations as they become due, you may hear of a company receiving an SD rating if it's only likely to default on certain debts.

What you need to know about SD 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 like SD may not appeal as much to general investors as investment-grade ones (those classed as BBB- or above).

SD is generally seen to be outside of 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 SD credit ratings.

For more information on how the credit scoring process works, see credit rating agency.