What is the D&B Rating?
The D&B Rating is a system that measures a firm’s size and composite credit appraisal, based upon information from a company’s interim or fiscal balance sheet and an overall evaluation of the firm’s creditworthiness.
The “5A” to “HH” Rating Classifications reflect a company’s size based upon net-worth or equity as computed by D&B. Company size can be an effective indicator of credit capacity. These Ratings are assigned to businesses that have supplied D&B with a current financial statement.
The Composite Credit Appraisal is a rating system from 1 through 4 that makes up the second half of a company’s rating and reflects D&B’s overall assessment of a firm’s creditworthiness. The Composite Credit Appraisal is based on D&B’s analysis of company payments, financial information, public records, business age and other important factors (when available).
Note: A “2” is the highest Composite Credit Appraisal possible for a company that does not supply D&B with current financial information.
The “1R” and “2R” Rating categories reflect company size based on the total number of employees for the business. They are assigned to company files that do not contain a current financial statement.
ER (Employee Range) Ratings apply to certain lines of business that do not lend themselves to classification under the D&B Rating system. Instead, these types of businesses are assigned an Employee Range symbol based on the number of people employed. No other significance should be attached to this symbol.
For example, a rating of “ER7” means there are between five and nine employees in the company. “ERN” should not be interpreted negatively. It simply means we do not have information indicating how many people are employed at this firm.
The D&B Rating field in a report may also display the following designations when certain conditions are present:
The ‘- -‘ Symbol: This represents the absence of a D&B Rating and should not be interpreted as indicating that credit should be denied. It means that the information available to D&B does not permit D&B to classify the company within a Rating Key and that further inquiry should be made before reaching a credit decision. Some reasons for using the “- -” symbol include: deficit net worth, bankruptcy proceedings, lack of sufficient payment information or incomplete history indicator.
DS (DUNS Support): This indicates that the information available to D&B does not permit D&B to classify the company using the D&B Rating Key.
INV (Investigation Being Conducted): When an “INV” appears, it means an investigation is being conducted on this business to get the most current details.
NQ (Not Quoted): This is generally assigned when a business has been confirmed as no longer active at the location, or when D&B is unable to confirm active operations. It may also appear on some branch reports, when the branch is located in the same city as the headquarters.
|Rating Classification||Composite Credit Appraisal|
|(Based on Worth from Interim or Fiscal Balance Sheet)||High||Good||Fair||Limited|
|Composite Credit Appraisal|
|Based on Number of Employees)||Good||Fair||Limited|
|1R||10 and over||2||3||4|
|2R||1 to 9||2||3||4|
Key To Employee Range
|Applicable to lines of business not covered by the D&B Rating system|
|ER1||1,000 or more|