Dun & Bradstreet Rating
The Dun & Bradstreet Rating has been recognised for many years as the leading predictive indicator for assessing business risks. These evaluations are based on the most comprehensive up-to-date information. The D&B Rating converts a lot of individual data into a clear assessment of a company’s performance.
CLEAR INSIGHTS
The Dun & Bradstreet Rating
The D&B Rating has been seen for years as a leading, objective risk indicator that can support you in making your credit decisions. For each country, D&B examines which factors are most decisive with regard to risk assessment and company bankruptcies. The analysis method is universal, which means that each D&B Rating, although determined on a country-specific basis, makes international comparisons possible.
The predictive power of the D&B Rating
It has been shown that, twelve months before the bankruptcy decision, 75% of the bankrupt companies had a D&B ‘Risk Factor 4’. The Risk Factor warns you at an early stage about possible problems and gives you ample opportunity to adjust your terms and conditions accordingly in order to avoid losses.
How is the D&B Rating updated?
Every day, public data, including court rulings and the latest balance sheet data, together with specific D&B data, such as the unique payment experiences, are added to the D&B database. The information is entered for each individual company and subjected to a mathematical algorithm. The D&B Rating is automatically updated and reflects the most recent state of affairs at a company.
What does the D&B Rating consist of?
The D&B Rating consists of two parts, namely the ‘financial strength’ code (based on the net equity) and the ‘Risk factor’ to reflect the risk, when you enter into transactions with a company. The Risk Factor varies from 1 (minimum risk: continue the transaction) to 4 (significant risk: only do business on a secured basis).
The ‘maximum credit’ rating
On the basis of the D&B Rating, we can make a recommendation about the maximum amount of credit that can be granted for a specific company. The “Risk Factor” is the most important part of this assessment. The business activities and the size of the company are decisive, so that not only the current position of the company is reflected, but also the economic and industrial trend. The assessment of the maximum available credit is a dynamic indication, which is continuously updated.
You will find the unique D&B Rating in a D&B Business Information Report.
D&B RATING
The ‘financial strength’ table
Net equity
Paid-up capital
Net equity (in €)
5A
5AA
50.000.000 and higher
4A
4AA
25.000.000 – 49.999.999
3A
3AA
10.000.000 – 24.999.999
2A
2AA
2.000.000 – 9.999.999
1A
1AA
1.000.000 – 1.999.999
A
AA
500.000 – 999.999
B
BB
300.000 – 499.999
C
CC
150.000 – 299.999
D
DD
100.000 – 149.999
E
EE
50.000 – 99.999
F
FF
25.000 – 49.999
G
GG
10.000 – 24.999
H
HH
0 – 9.999
Net equity
Net equity (in €)
N
Negative net equity
O
Net equity not determinable – figures not available
NB
New company – exists for less than 12 months
NQ
Out of business – has ceased activities
D&B RATING
The ‘risk factor’ table
Risk Factor
Risk level
Actions to be taken
1
Minimum risk
Continue the transaction; offer more flexible terms if requested
2
Low risk
Continue the transaction
3
Above average risk
It is advisable to continue to monitor the development of the company and the payment process closely.
4
Significant risk
Ask for guarantees before granting credit
5
-
The information available does not make it possible to determine a risk factor.
What can we help you with?
I want to be able to assess the risks with prospects
Did a promising lead come in? Good for you! But now it's time to make some business decisions. Are you going to accept him as a customer? Can he buy on credit, and if so on what terms? When making these decisions, use our reliable business information, such as our credit risk data. Then you avoid doing business with companies that actually cannot meet their financial obligations. Read more.
I want to map my market and market potential
Knowledge and understanding of your market is critical to your success. The Dun & Bradstreet Data Cloud is the largest of its kind and allows you to conduct comprehensive analysis, understand your market share and market penetration, and uncover growth opportunities.
How many companies are there actually within a particular region and how big are these companies? How many companies are active within a specific branch and how many people are employed there? You can quickly and easily make counts and selections in D&B's international companies database on the basis of many criteria. This gives you an insight into where you can best focus your efforts and where your chances of success are the greatest. Read More
I want to integrate Dun & Bradstreet data into my ERP system
By integrating our rich database into your ERP system, you can benefit in many ways. For example, you clean up and keep your data clean throughout your organization. You can validate and enrich your customer and prospect information directly from your business application. Current information becomes instantly accessible within your ERP and you can use it to automate your acceptance process and improve scoring model. Read more.
I want to identify a stakeholder (UBO) of a complex organization
Almost 70% of Dutch BVs are linked via shares to another company in the Netherlands or internationally. More than 30% of Dutch BVs and NVs have a link to foreign companies. The Dun & Bradstreet Data Cloud is the most complete and reliable source for insight into the Dutch and foreign relationships of your business partners, ranging from small unknown companies to the largest multinationals with thousands of branches. Read more.
I want to understand and monitor the risk in the total supply chain
An initial check when selecting a supplier is not sufficient. It is then important to make all changes in risks transparent and to monitor them. This keeps you informed exactly how the risks in your total supply chain are developing. Only with this information can you correctly assess all risks within your portfolio. Read more.
