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Debtor Risk Assessment

Company insolvency forecasts over the next twelve months

The Debtor Risk Assessment measures the probability that a company will default over a 12 month period. It predicts the likelihood of the business having difficulty in surviving as a trading entity. The DRA uses different statistical methods and combines hard facts (such as financial data and ratings) and a soft facts (e.g. company management).


The assessment scale ranges from 0 (company in default) to 10 (the best evaluation possible).


Coface clients can access the DRA via CofaNet Essentials. Daily alerts of changes in the DRA of their portfolio allow them to make the right decisions and better manage their credit risk.

Low Risk for Investment Grade Companies


10 Very high financial stability

Large and extremely stable companies. Solidity is undoubted. Risk of default is close to zero.


9 High financial stability

Large to medium sized companies or groups of companies demonstrating a high level of financial stability. Exposures could only be jeopardized by extreme and unforeseen external factors. Risk of default is very low.


8 Good financial stability

Financials are basically sound. In addition to extreme factors, exposures are sensitive to the business environment. Nevertheless, risk of default is low.


7 Stable, slightly above average financial stability

Financial performance and stability for large companies/group of companies is slightly above average for medium size businesses it is considered normal. Risk of default is slightly above average.


6 Average financial stability

Financial stability is average. The sensitivity to external adverse factors should not be neglected. Risk of default is average.

Medium, Acceptable Risk for Non Investment Grade Companies


5 Medium Risk

Financial performance and above all stability are clearly below average. Risk of default must be consiered but remains acceptable in most cases for short term credits.


4 Increased Risk

There are some problems. If they are not resolved, the ability to fulfil obligations could clearly be affected. Risk of default is significant but may be acceptable for limited short therm credits.

High Risk for Non Investment Grade Companies


3 High Risk

Financial situation and reliability are questionable. Risk of default is high.


2 Very High Risk

Financial situation is very poor and close to critical. Risk of default is very high.


1 Extremly High Risk

Demonstrates clear signs of financial distress. Any commitment is linked with a high probability of default. Risk of default is extremly high.


0 Default