Natonal flag displaying faded splendour (3,5)

I believe the answer is:

old glory

I'm a little stuck... Click here to teach me more about this clue!

'natonal flag' is the definition.
I can't judge whether this definition defines the answer.

'faded splendour' is the wordplay.
'faded' becomes 'old' (I've seen this in another clue).
'splendour' becomes 'glory' (glory can mean splendour or grandeur).
'old'+'glory'='OLD GLORY'

'displaying' acts as a link.

Can you help me to learn more?

(Other definitions for old glory that I've seen before include "seen flying at pole" , "The USA national flag" , "National flag of the United States" , "The Stars and Stripes" , "standard" .)

I've seen this clue in the Sydney Morning Herald.

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