Do you know your company’s Dun & Bradstreet rating? You should.
Known as the D&B Rating, it affects the terms and conditions of relations with outside parties, and it determines the cost of any loans made to the business.
The information contained in a Dun & Bradstreet report also can make the difference between being awarded a work contract or not. Here’s our Dun & Bradstreet rating guide, complete with everything you need to know about the popular business scoring model.
What Is a Dun & Bradstreet Rating?
A D&B Rating is an overall evaluation of the financial strength and creditworthiness of a company.
The Rating is based on information in the company’s financial statements that have been furnished to Dun & Bradstreet. It has data about a business’s payment history, a comparison of a company’s standing within the industry and an evaluation of the company’s financial stability.
These ratings are divided into two parts: a rating classification and the composite credit appraisal.
D&B Rating Classification
Businesses that have supplied current financial statements to Dun & Bradstreet are assigned a rating classification. (D&B doesn’t assign a rating classification to companies that haven’t provided financial statements.)
A rating classification indicates the financial strength of a company based on its net worth or equity position. It is a combination of letters and numbers. At the high end, a 5A rating indicates a company with a net worth of more than $50 million, while an HH rating at the low end represents a company with a net worth less than $5,000.
Dun & Bradstreet Rating Scale
|Rating Classification||Net Worth (USD)|
|5A||$50,000,000 and Over|
|4A||$10,000,000 to $49,999,999|
|3A||$1,000,000 to $9,999,999|
|2A||$750,000 to $999,999|
|1A||$500,000 to $749,999|
|BA||$300,000 to $499,999|
|BB||$200,000 to $299,999|
|CB||$125,000 to $199,999|
|CC||$75,000 to $124,999|
|DC||$50,000 to $74,999|
|DD||$35,000 to $49,999|
|EE||$20,000 to $34,999|
|FF||$10,000 to $19,999|
|GG||$5,000 to $9,999|
|HH||Up to $4,999|
D&B Composite Credit Appraisal
The Composite Credit Appraisal part of the Dun & Bradstreet rating system represents a company’s overall creditworthiness. This score is based on a company’s payment history, years in business, public records, number of employees and financial information. It ranges from 1 to 4.
The most creditworthy businesses have a score of 1. A company that doesn’t give financial information to D&B can’t have a score higher than 2.
Dun & Bradstreet Rating Scale: Composite Credit Appraisal
|Composite Credit Appraisal||Net Worth (USD)||Condition|
|1||Low risk||High credit|
|2||Good risk||Good credit|
|3||Fair risk||Fair credit|
|4||High risk||Limited credit|
|–||Insufficient info. to assess risk level||Undetermined|