Past of it'd better be

I was just watching TV and one of the characters in the show said something like "I don’t know what happened there, but it’d’ve better been good".

Realizing that the deconstruction of that sentence is "it had have better been good" sounds like a tonguestwist, my first impression is that it’s incorrect, but if it is, then what construction is actually correct to express the idea of "it would be desirable that it was good"?