The Rating
Guidelines offers a quick help on how to read and interpret
the Rating (click here for definitions) in the
D&B-reports.
Rating not established Companies
which are bankrupt or liquidated
Companies with C-rating Companies with B-rating
Companies with AN-rating
Companies
with A-rating Companies with AA
& AAA-rating.
Check why the company does not have a rating!
The reason why the company often does not have a rating is due to the fact that the company has not filed their Financial Statement. Try to obtain the Statement directly from the customer or retrieve more information such as a D&B Standard before you grant any credit.
Other possible explanations for not being rated are that the company is not officially registered, the customer has given you a wrong name or there is registered a special event.
If the customer is declared bankrupt or legally liquidated it is no longer an independent legal entity. The company does no longer exist and new credits can not be granted. Please check if the operation is carried on in another name and company. If this is the situation you have the wrong company in your file. You then have update your file with the correct company
Remember that companies might operate with wrong name and number.
Unsecured credit to companies with C-rating is a very high credit risk.
Stop all credit, do not grant any new credit until you have retrieved any additional information, such as a D&B Standard. Check the rating with your own information and the credit history of the customer.
Get in contact with each customer with C-rating, if possibly try to reduce, close or secure existing credit engagements. If the customer pays slowly, trace him and send him to collection.
Inform all internal departments that you have stopped the credit.
Also companies with B-rating is a considerable credit risk.
Check your own file for information and the company’s
credit history and try to establish some kind of a security, such as a guarantee for
existing or new credit. If the credit is high you can retrieve additional information in a
D&B Standard.
Up!
An AN-rating indicate that the
company is newly registered. Generally the first 2 years for a company is critical. Grant
only small credits, and monitor the development. If the company fail to pay, act
immediately.
Up!
The company is credit worthy. Check your limit against the limit on the report. Be aware of companies who seem to be slow payers.
The companies credit worthiness is good. Compare your limit with the companies turnover and limit.
