D&B gives you knowledge about your customers via instant access to in depth & accurate information on over 2.8 million Australian and New Zealand businesses.
Select from the links below to find out more about D&B's Risk & Delinquency Scores and rating interpretations:
DRS functions as a fiscal crystal ball, evaluating the probability that a business will experience financial distress. Financial Distress is defined as:
- Forced change of control (Administrator / Receiver Manager appointed) or;
- Involuntary Liquidation / Insolvency (Ceasing operations owing money to creditors)
This statistical analysis uses past behaviour to predict future performance - specifically that a business will experience financial distress within the next 12 months. The DRS uses over 25 variables including financial statements, trade payment history, company age and structure, charges, collections, defaults and judgements.
Australia
DRS
| Score Range | Incidence of Distress | Relative Risk Level | D&B Recommendation |
| 1444-1560 | 0.3% | Minimal | Extend terms to encourage growth |
| 1400-1443 | 0.6% | Very Low | Extend terms to encourage growth |
| 1378-1399 | 1.0% | Low | Extend terms |
| 1342-1377 | 1.5% | Average | Extend terms |
| 1317-1341 | 2.5% | Moderate | Extend terms and monitor |
| 1277-1316 | 5.0% | High | Review terms and monitor |
| 1204-1276 | 11.1% | Very High | Review terms and monitor closely |
| 1001-1203 | 26.8% | Severe | C.O.D. |
| 0 | In financial distress | - | C.O.D. |
New Zealand
DRS
| Score Range | Incidence of Distress | Relative Risk Level | Risk Class |
| 1458-1680 | 0.3% | Minimal | Extend terms to encourage growth |
| 1410-1457 | 0.7% | Very Low | Extend terms to encourage growth |
| 1371-1409 | 1.1% | Low | Extend terms |
| 1341-1370 | 1.8% | Average | Extend terms |
| 1322-1340 | 3.0% | Moderate | Extend terms and monitor |
| 1301-1321 | 4.0% | Significant | Extend terms and monitor |
| 1258-1300 | 6.1% | High | Review terms and monitor closely |
| 1001-1257 | 15.9% | Severe | C.O.D. |
| 0 | In financial distress | - | C.O.D. |
Dynamic Delinquency Score
The Dynamic Delinquency Score, a compilation of financial, credit and demographic factors, is a statistically derived measure that assesses the probability of a firm paying its bills in a severely delinquent manner (90+day past terms) over the next 12 months. Benchmarked by individual industry segment, the DDS tells you how the company measures up to other businesses in D&B's database.
DDS
| Score Range | Delinquency Probability | Relative Risk | Risk Class |
| 101-284 | 83.70% | Severe | F |
| 285-388 | 49.60% | High | E |
| 389-455 | 17.10% | Average | D |
| 456-528 | 6.90% | Below Average | C |
| 529-541 | 3.30% | Low | B |
| 542-608 | 2.50% | Minimal | A |
D&B Rating Interpretation Tables
|
Financial Strength |
Composite Appraisal | ||||||||
| Rating | AUD$ | Strong | Good | Fair | Limited | ||||
| 5A | 50,000,000 and over | 1 | 2 | 3 | 4 | ||||
| 4A | 10,000,000 to 49,999,999 | 1 | 2 | 3 | 4 | ||||
| 3A | 5,000,000 to 9,999,999 | 1 | 2 | 3 | 4 | ||||
| 2A | 1,000,000 to 4,999,999 | 1 | 2 | 3 | 4 | ||||
| A | 600,000 to 999,999 | 1 | 2 | 3 | 4 | ||||
| B | 300,000 to 599,999 | 1 | 2 | 3 | 4 | ||||
| C | 100,000 to 299,999 | 1 | 2 | 3 | 4 | ||||
| D | 40,000 to 99,999 | 1 | 2 | 3 | 4 | ||||
| E | 12,000 to 39,999 | 1 | 2 | 3 | 4 | ||||
| F | 4,000 to 11,999 | 1 | 2 | 3 | 4 | ||||
| G | up to 3,999 | 1 | 2 | 3 | 4 | ||||
The symbols 5A through G reflect the range of tangible net worth based on asset and liability figures
Alternative Ratings Used
| -- (blank) | Used when information available is insufficient or does not permit assignment of a rating. This is also used for businesses that have been trading for a relatively short period. Companies showing signs of financial distress of a deficit net worth may also receive a "--" rating. |
| NQ | Certain businesses do not lend themselves to a D&B rating, and the letters "NQ" on any D&B Business Information Report mean "Not Quoted". Information on these names, however, continues to be stored and updated in the D&B Business Information file, and Reports are available. Government entities are rated NQ. |
| INV | Shown in the place of rating. INV indicates that D&B is currently updating an existing report. |
| DS | Assigned to records with minimal data that require an investigation before a rating can be assigned. |
| AC | Indicates a file which only includes ASIC (Australian Securities and Investments Commission) data which has not been matched with D&B's adverse data. |
| BR | A BR rating indicates the record is a branch location of a subject company's headquarters or headoffice. |
