DNB creditgate
Australia

D&B Rating Tables


Dynamic Risk Score

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

  Dynamic Risk Score
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

  Dynamic Risk Score
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 Review 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.

  Dynamic Delinquency Score
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 to 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.

International

Click here to view scores and ratings tables for businesses outside the United States.

5