Default Rating (D)
Corporate Credit Analysis glossary · Corporate Credit Analysis
Definition
S&P's 'D' rating, indicating the issuer has defaulted on its obligations. Fitch uses 'RD' (restricted default) for selective defaults and 'D' for payment default; Moody's transitions to 'Ca' or 'C' upon default.
Default Rating (D) in plain English
Rating agencies grade how likely a borrower is to pay you back, and the letter "D" is the bottom of the scale — it means "Default," i.e., the borrower has already failed to pay what it owed. Think of it as the credit-score equivalent of "already missed the payment," not "might miss it." The catch is that agencies use slightly different labels: S&P writes "D," Fitch writes "RD" (restricted default) when only some debts were skipped and "D" for a full-blown missed payment, and Moody's slides down to "Ca" or "C." Same bad news, different handwriting.
Practice Default Rating (D)
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