The
D&B Compact Guidelines
The D&B Compact Guidelines gives you practical help and
support concerning the interpretation of your D&B Compact for maximum
use..
Rating CodesLimitSpecial EventsCredit Profile
History/Operation Shareholder/Management
FinanceAbility to PayPayment remarks - Explanations
Generally, the following is found in D&B
reports:
Name of the Business
Mailing address, zip code and post office
Telephone and fax numbers
Business organization (tax) number
D-U-N-S number
VAT-number
Business legal form -Click
here to read more about business legal forms.
We recommend a D&B Compact report when you want to check an existing customer, or when you are dealing with a new customer and a credit limit below 50,000 SEK.
The following rating codes can appear in a D&B Compact report:
| AAA | Highest credit worthiness |
| AA | Good credit worthiness |
| A | Credit worthy |
| AN | Newly established |
| B | Credit against security |
| C | Credit rejected |
| - | - Rating not established |
Companies not included in the rating system may
receive the following code:
NR Not rated
Finland:
A Finnish Business which has not submitted its annual reports, and whose rating is based
on its payment score, cannot receive a higher rating than A.
Norway:
A Norwegian sole proprietorship cannot receive a higher rating than AA.
Sweden:
Sole proprietorships, partnerships or limited partnerships cannot receive a higher rating
than AA.
A limit is stated for each company with a rating of AAA, AA and A. The limit model used is based on both the companys's cash flow and shareholder equity.
The following limitations apply:
General:
| AAA | No more than 9% of turnover |
| AA | No more than 6% of turnover |
| A | No more than 3% of turnover |
Danmark:
Limit not to exceed 50,000 tdkk.
Norway:
Companies with turnover of less than one million NOK are not given a limit. Companies with
primary industry codes of 6100, 6110, 6120, 7010, 7020 and 7415 (shipping, property and
holding management) are not given any limit either.
If a special event concerning a company has been registered, this will affect the companys's rating. Examples of special events are: suspension of payments, negotiations with creditors, merger, changes in the Board of Directors and/or auditors, etc.
While special events are often negative, some may be
positive. For example, when a company classified as "B" , is reclassified based
on a current even, as "(-) Not rated".
up!
Credit Profile - Sweden
The information used in our rating system is grouped and categorized as follows (each Credit Profile is evaluated separately):
History/Operation
Shareholders/management
Finances
Solvency
Click here to read about Credit Profiles in the rest of Scandinavia.
The History/Operation shows the change in the company since the first rating. Using the History/Operation, you can easily see the company's rating trend.
up!General ownership forms:
Consolidated group relationship
Parent Business
Subsidiaries
Finland
Although information about key personnel is used in assessing companies, that information
does not appear in the reports.
Norway
Equity structure:
A classification of the Business's owners using the following scale:
Foreign owned
General limited liability corporation, not publicly traded
Owned by a Business
Owned by individuals
Owned by combination
Owned by governmental entity
Unknown
Duty to report
A company either owned by individuals or one whose
equity structure is unknown, and in cases where there are payment remarks regarding
directors or the CEO (which information is used in the rating model), a copy is to be sent
to the persons to whom the information relates, including the name of the party requesting
the inquiry.
Sweden
If the company has a estimated shareholder equity of
less than 500,000 SEK, information regarding directors will be used in evaluating the
company.
Turnover:
The total sales income, rental income and miscellaneous income of a Business.
Profit or loss before taxes:
The profit or loss before taxes, i.e. after both
financial income/expenses, including extraordinary income/expenses [sic]
Estimated shareholders' equity:
Book value of shareholders' equity + 70% of untaxed
reserves.
Total assets:
The Business's total asses, current and capital assets
[sic]
Total number of employees:
The total number of employees of the Business on the
date of the annual reports.
Solvency:
Estimated shareholders' equity as a percentage of total
capital.
Quick asset ratio:
Current assets minus inventory as a percentage of
short-term liabilities.
Current ratio:
Current assets as a percentage of short-term
liabilities.
Profit ratio:
Profit or loss as a percentage of volume. The profit
ratio is a good, simple measurement of how large a percentage of volume is represented by
the profit or loss before tax expenses. A negative profit ratio means that the Business is
generating a loss.
Return on total capital, RT:
Profit or loss after financial items plus financial
expenses as a percentage of total capital.
Denmark
Debt collection cases are shown in the reports.
Finland
Payment remarks:
Injunctions to pay
Decisions in legal proceeding
Collection information is used in the rating model, but does not appear in the reports.
Paydex
Paydex is an international index which expresses a
company's payment record in number of days.
D&B Finland OY continually compiles electronic information regarding payment records from many suppliers. Paydex is obtainable in cases where a large enough number of analyzed invoices is available.
The Paydex for a company which pays on the due date is 80. The average delay in payment is calculated by subtracting the company's Paydex from Paydex 80, e.g. 80-65 = 15 days' delayed payment.
Norway
Payment remarks:
Collection matters
Compromises with creditors
Execution
Insolvency
Sweden
Applications:
Applications for injunctions to pay.
Payment remarks:
Final injunctions to pay
Execution
Judgment
Finland
Injunctions to pay
Documents are submitted to the enforcement agency that
verified the claim.
Commencing legal action
The document is sent to the district court which has
confirmed the demand.
Protest of draft/bill of exchange
Protest of a draft or bill of exchange which has fallen
due is made before a Notary Public.
Norway
Collection
Arbitrated compromise
A judgment made by an arbitration panel, based on
written submissions. The debtor’s liability to pay the creditor is determined.
Execution
Execution following an arbitrated compromise judgment,
etc.
Insolvency
There are no assets which can be attached/executed on.
Sweden
Application for an injunction
to pay
Documentation which is sent to the sheriff in order to
determine the amount of a claim.
Final order/decision to issue an
injunction to pay, judgment in a civil action, default judgment
Document sent to the sheriff or district court which
has determined the claim.
Taxes or fees owed
Taxes or fees have not been paid on time, and the tax
authorities have therefore referred the matter to the sheriff for collection.
Protest of bill of exchange
Protest of a bill of exchange is made before a Notary
Public.
