Credit FAQ: What Does S&P Global Ratings Consider A Default For Sovereign And Non-U.S. Local And Regional Governments?

S&P Global Ratings makes certain distinctions regarding what it considers a default for sovereign and non-U.S. local and regional governments. For example, we don't consider it a default when there is a failure to pay debt owed by one government to another government. In this FAQ, we explain the rationale for our approach, as well as certain elements that are common, and other elements that are unique, for how we apply our default definitions for sovereign governments versus non-U.S. local and regional governments. We have not made any changes to our sovereign rating criteria ("Sovereign Rating Methodology," Dec. 18, 2017). We are providing additional guidance with respect to our approach for non-U.S. local and regional governments ("Methodology For Rating Local

...S&P Global Ratings makes certain distinctions regarding what it considers a default for sovereign and non-U.S. local and regional governments. For example, we don't consider it a default when there is a failure to pay debt owed by one government to another government. In this FAQ, we explain the rationale for our approach, as well as certain elements that are common, and other elements that are unique, for how we apply our default definitions for sovereign governments versus non-U.S. local and regional governments. We have not made any changes to our sovereign rating criteria ("Sovereign Rating Methodology," Dec. 18, 2017). We are providing additional guidance with respect to our approach for non-U.S. local and regional governments ("Methodology For Rating Local And Regional Governments Outside Of The U.S.," July 15, 2019)....

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