D&B Rating
D&B Rating is a unique indicator that consists of two parts and makes it possible to quickly assess the financial capabilities of the company and the risk associated with cooperation.
D&B Rating is the only generally recognized indicator of financial capabilities and risks of all the companies all over the world, and it makes it possible to compare businesses in different industries and countries. That is why large international companies demand a D&B report with D&B Rating before starting cooperation with any company.
D&B Rating in business information reports has the following format: D&B Rating 5А1
Financial Strength Indicator
This is the first part of the rating, specifying financial capabilities of the given company
It is based on Tangible Net Worth (one letter is assigned, e.g. 5А)
If the balance sheet is not available, financial capabilities of the company are ascertained on the basis of Nominal or Issued Capital (two letters are assigned, e.g. 5АА)
If the balance sheet is not available and Nominal Capital is unknown, additional rating is assigned, which is based on the assessment by the principals of their Net Worth or on the number of employees.
The Table below shows the correspondence between Net Worth and Financial Strength Indicator
Based on Net Worth
| Financial Strength | Net Worth, $ |
| 5А | More than 60 mln. |
| 4А | 25 - 60 mln. |
| 3А | 12 – 25 mln. |
| 2А | 2.5 – 12 mln. |
| 1А | 1.2 – 2.5. mln. |
| A | 600,000 – 1.2 mln. |
| B | 345,000 – 600,000 |
| C | 175,000 – 345,000 |
| D | 120,000 – 175,000 |
| E | 60,000 – 120,000 |
| F | 35,000 – 60,000 |
| G | 15,000 – 35,000 |
| H | 0 - 15,000 |
Based on Issued Capital
| 5АА | More than 60 mln.. |
| 4АА | 25 - 60 mln. |
| 3АА | 12 – 25 mln. |
| 2АА | 2.5 – 12 mln. |
| 1АА | 1.2 – 2.5. mln. |
| AА | 600,000 – 1.2 mln. |
| BВ | 345,000 – 600,000 |
| CС | 175,000 – 345,000 |
| DD | 120,000 – 175,000 |
| EE | 60,000 – 120,000 |
| FF | 35,000 – 60,000 |
| GG | 15,000 – 35,000 |
| HH | 0 - 15,000 |
Other Ratings
| N | Negative Net Worth Negative Net Worth after deduction of Intangible Assets |
| O | Net Worth Undetermined Such rating is assigned if the balance sheet of the company is not available or the date of the report is more than 18 months |
| NB | New Business The company has been operating for less than 18 months |
| NQ | Out of Business |
| -- | The information is insufficient for assigning a rating |
Risk Indicator
Risk Indicator composes the second part of D&B Rating. It is an overall evaluation of credit worthiness of the company.
Interpretation:
1. high creditworthiness (minimal risk)
2. good creditworthiness (fair trade risk)
3. average creditworthiness (slightly greater than average risk)
4. low creditworthiness (high risk)
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