Default occurs when the issuer is unable to fulfill one of its financial obligations when due. S&I Ratings defines events leading to the default of the issuer as follows:

• The issuer is unable to fulfill part or all of its financial obligations (interest payments or principal payments) when due as committed in credit agreements. Financial obligations include loans from credit institutions, financial leases, bond issuances, and other interest-bearing commitments.
• The issuer is undergoing bankruptcy procedures or has been requested to initiate bankruptcy procedures by creditors due to its inability to fulfill financial obligations.
• Financial obligations are being negotiated for restructuring or changes in terms related to the duration and amout of payments when the issuer is unable to fulfill its obligations.

In cases where the issuer delays payment due to technical errors unrelated to its ability to fulfill obligations, we do not consider this an event of default.