”Globes” has learned that Dun & Bradstreet is automatically lowering the risk rating of Israeli companies, if no new figures about them are received.
A large company complained that its Dun & Bradstreet risk rating had been lowered, after no new data about it had been received in the past year. The company general manager appealed to Dun & Bradstreet, where he claims he was told that the computer had lowered the rating, in the absence of new figures. It was suggested that he purchase a Dun & Bradstreet study in order to improve his company’s risk rating.
The company in question is in the food industry and is a subsidiary of an international industrial concern with a yearly sales turnover of $30 billion. The Israeli subsidiary is ranked among the three leading companies in its field, with a yearly turnover of NIS 100 million.
The company expanded significantly a year ago and its Dun & Bradstreet risk rating was upgraded. A company customer recently received a Dun & Bradstreet business report on the company, stating, “the rating of the company, which was formerly rated as a low trade risk, has been downgraded, and is now regarded as a normal risk.”
The company general manager asked Dun & Bradstreet for an explanation for the downgrading of the company’s rating. He stated that he was answered, “There has been no movement or report about you for a long time, so we automatically raise the risk rating. Perhaps you would like to order a study?”
Dun & Bradstreet general manager Reuven Kuvent responded that such a study involves no payment by the company being researched. He said that the computer does not automatically lower the rating if no new data are available, but calculates the company rating, based on 27 parameters.
Dun & Bradstreet also said, “The claim that we said the information was out of date is incorrect. There are no new figures in the last year on the company’s expansion. Taking this into account, as well as other variables, the computer algorithm determined a new ranking for the company.”
Published by Israel's Business Arena on November 12, 2000