Preferred creditor treatment (PCT) is an important element in Standard&Poor's Ratings Services' ratings on multilateral lending institutions (MLIs). PCT rests on an assumption regarding sovereign borrowers' future behavior. PCT positively affects MLIs' asset quality and risk-weighted capital ratios and, therefore, MLIs' creditworthiness. Should we come to believe that our assumption that MLIs will be paid more punctually than commercial or bilateral creditors will no longer hold, we could lower our MLI ratings. (Watch the related CreditMatters TV segment titled, "How An Erosion Of Preferred Creditor Treatment Could Lead To Lower Ratings On Multilateral Lending Institutions," dated Aug. 26, 2013.) Priority of payment in the event of a sovereign default arises in the context of debt sustainability. A government