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What is the D&B® Rating?

Question: What is the D&B® Rating?

Answer: 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.

For more information on how to impact your D&B Rating, please visit our FAQ on impacting the D&B Rating.

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