What is a D rating in credit ratings indicative of?

A D rating in credit ratings is indicative of a high likelihood of default. This designation signifies that the borrower is in financial distress and has either already defaulted on their obligations or is very close to doing so. Such a rating reflects the issuer's inability to meet payment obligations, which raises red flags for investors and lenders.

In the context of credit ratings, a D rating falls within the spectrum usually defined by agencies that classify creditworthiness based on risk and financial health. Investment-grade statuses typically range from AAA to BBB (or equivalent), indicating varying levels of low risk and economic stability. Ratings like A or B signals a reasonable likelihood of repayment and are considered safer investments. Consequently, options that suggest investment-grade status, probable economic stability, or approval for future lending don't align with the characteristics of a D rating, which explicitly indicates severe financial troubles and impending default.