A value added tool which provides a quick assessment of a company’s size and composite credit appraisal, based on information in a company’s interim or fiscal balance sheet and an overall evaluation of the company’s creditworthiness.
The D&B Rating consists of 2 indicators – Financial Strength and Composite Appraisal/Risk Condition.
Financial Strength is an indication of the company’s tangible net worth (i.e. Shareholder’s funds less any tangible assets). It is calculated using either the Net Worth or Paid-up Capital of the Subject Company.
If both in-date financials and paid-up capital are available, then the Net Worth is always used to calculate Financial Strength
Composite Appraisal/Condition is linked to the level of risk and is an overall evaluation of credit worthiness. It takes into account the financial condition and several factors such as trade references, history, legal structure, management experience and any adverse listings.