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Ratings Guide
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Canada

The D&B® Rating consists of a Risk Indicator/Condition Code and Financial Strength Indicator. The Financial Strength Indicator is based on either Net Worth or Issued Capital.

A US Financial Stress Risk Class of 1-5 is a segmentation of the scoreable universe into five distinct groups where a one (1) represents businesses that have the lowest probability of failure, and five (5) represents businesses with the highest probability of failure. The Risk Class is set by the National Percentile Ranking and each Class has an associated Projected Failure Rate. This Class enables a customer to quickly segment their new and existing accounts into various risk segments to determine appropriate risk management policies.

D&B Risk Indicator

The following possible values exist for the D&B Risk Indicator in this country.

Risk IndicatorProbability of FailureGuide to Interpretation
1Minimal riskProceed with transaction - offer terms required
2Low riskProceed with transaction
3Greater than average riskProceed with transaction but monitor closely
4Significant level of riskTake suitable assurances before extending credit

ER (Employee Range) Ratings

ER (Employee Range) Ratings apply to certain lines of business that do not lend themselves to classification under the D&B Rating system. Instead, we assign these types of businesses 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.

Rating# of Employees
ER 1 1000 +
ER 2 500 - 999
ER 3 100 - 499
ER 4 50 - 99
ER 5 20 - 49
ER 6 10 - 19
ER 7 5 - 9
ER 8 1 - 4
ER N Not Available

D&B Financial Strength Indicator

The following table possible values exist for the D&B Financial Strength Indicator in this country.

Rating Classification Composite Credit Appraisal
Based on Net Worth (from Interim or Fiscal Sheet) Strong Good Fair Limited
5A 50,000,000 and greater 1 2 3 4
4A 10,000,000 - 49,999,999 1 2 3 4
3A 1,000,000 - 9,999,999 1 2 3 4
2A 750,000 - 999,999 1 2 3 4
1A 500,000 - 749,999 1 2 3 4
BA 300,000 - 499,999 1 2 3 4
BB 200,000 - 299,999 1 2 3 4
CB 125,000 - 199,999 1 2 3 4
CC 75,000 - 124,999 1 2 3 4
DC 50,000 - 74,999 1 2 3 4
DD 35,000 - 49,999 1 2 3 4
EE 20,000 - 34,999 1 2 3 4
FF 10,000 - 19,999 1 2 3 4
GG 5,000 - 9,999 1 2 3 4
HH 0 - 4,999 1 2 3 4
DS DUNS Support - This indicates that the information available to D&B does not permit us to classify the company within our Rating Key. When ordering these reports, an investigation can be performed and results sent to you at your request for an additional fee
INV Investigation Being Conducted - When an "INV" appears, it means an investigation is being conducted on this business to get the most current details.
-- This represents the absence of a D&B Rating and should not be interpreted as indicating that credit should be denied. It means that the information available to D&B does not permit us to classify the company within our Rating Key and that further inquiry should be made before reaching a credit decision. Some reasons for using the "- -" symbol include: deficit net worth, bankruptcy proceedings, lack of sufficient payment information or incomplete history indicator.
FB or FBN FB - Indicates a Foreign Branch
FBN - Indicates a Foreign Branch - not to be listed in directories