This policy setting applies to applications using the Cred SSP component (for example: Terminal Server). If you enable this ...

This policy setting applies to applications using the Cred SSP component (for example: Terminal Server).

If you enable this policy setting you can specify the servers to which the user's default credentials can NOT be delegated (default credentials are those that you use when first logging on to Windows).

If you disable or do not configure (by default) this policy setting, this setting does not specify any server.

Note: "The Deny Delegating Default Credentials" can be set to one or more Service Principal Names (SPNs).  The SPN represents the target server to which the user credentials can NOT be delegated.  The use of a single wildcard is permitted when specifying the SPN.

For Example:
TERMSRV/host.humanresources.fabrikam.com Terminal server running on host.humanresources.fabrikam.com machine
TERMSRV/* Terminal server running on all machines.
TERMSRV/*.humanresources.fabrikam.com Terminal server running on all machines in .humanresources.fabrikam.com

This setting can be used in combination with "Allow Delegating Default Credentials" to define exceptions for specific servers that are otherwise permitted when using wildcards in the "Allow Delegating Default Credentials" server list.