What does the C rating in credit ratings indicate?

The C rating in credit ratings indicates probable default. This rating signifies a very risky investment where the issuer is expected to have difficulty meeting its financial obligations. Generally, ratings from organizations like Moody's or Standard & Poor's range from high creditworthiness, often identified with ratings like A or higher, down to lower ratings that reflect a higher risk of default. Specifically, a C rating shows that the issuer is either in default or is very likely to default soon. This kind of rating serves as a critical warning to investors, advising them to proceed with caution or to avoid investment altogether due to the heightened risk involved.