Debtor Risk Assessment
Company insolvency forecasts over the next twelve months

The Debtor Risk Assessment (DRA) is based on a statistical model which predicts the probability of company insolvency over the next 12 months.
The Debtor Risk Assessment from Coface is not comparable with the classic credit ratings issued by Rating Agencies. The Coface assessment takes into account not only the assessment and the company turnover, but also its business sector, the country in which the company operates and the know-how of a credit insurer.
As the Debtor Risk Assessment reflects only the probability of insolvency, it is possible that with a Credit Limit request and, despite a good assesment, other factors (for example, a ‚dormant company‘) determine a partial acceptance or refusal of the limit requested.
The disclosure of this confidential information (as is common for credit limits and/or other @rating assessments) is not allowed.
The Debtor Risk Assessment is divided into 10 classifications and into three risk categories:
Low Risk Investment Grade Companies
10 –Very high Credit Score
The risk of payment default is very small und company solvency is very good. The company exibits a very high ability to withstand unforseen events.
9 – High Credit Score
The risk of payment default is very small and the financial stability of the company is very high. The company exibits a high ability to withstand unforseen events.
8 – Good Credit Score
The risk of payment default is small and company solvency is good. The company is able to withstand unforseen events.
7 – Stable, slightly above average Credit Score.
The risk of payment default is relatively small and the company solvency is stable.The company should, given an appropriate amount of time, be able to react to any deterioration in the economic climate.
6 – Average Credit Score
There is an average risk of payment default. Changes to credit ratings should be monitored closely. An appropriate amount of time will be required for the company to be able to react to a deterioration in the economic climate.
Medium, acceptable Risk with Non Investment Grade Companies
5 – Medium Risk
The financial capacity and stability of large companies or corporations is slightly below average. For mid-sized companies it is normal. The risk of payment default represents the average.
4 – Heighted Risk
The financial stability is below the average. The risk of payment default is higher than average. A high exposure to external events.
High Risk with Non Investment Grade Companies
3 - High Risk
The company exhibits a bad financial situation. The risk of payment default is high. The company is not able to react in time to a deterioration in the credit situation.
2 - Very High Risk
The risk of payment default is very high and company solvency is very poor. The economic situation is critical.
1 – Extremely High Risk
The risk of payment default is very high and company liquidity is too low. Deliveries on credit terms are not recommended.
0 – Payment Default