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What is the Business Registrations Section?Business registrations supply important details about a company’s incorporation history. These details are invaluable when you need to:

- verify the existence of a registered organization

- confirm legal information, such as a company’s organizational structure, date and state of incorporation or organization

- research possible fraud by reviewing names of principals and business standing within a state

Business Registrations have taken on added importance with revisions to UCC Article 9. Creditors will now be held responsible for the validity and accuracy of UCC statements they file with the Secretary of State. Failure to meet this requirement may jeopardize your legally recognized rights to collateral in secured financing agreements.

Minimize your exposure under this new legislation by using Registration details to validate your UCC filings.

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What is the Business Summary Section?The Business Summary section displays basic company profile information, such as name, tradestyles, address, phone number, parent company name and location, chief executive officer name, sales volume, net worth, number of employees, line of business and the D&B D-U-N-S® Number. Use this summary of the full report to get a quick view of the business, and locate areas to investigate more closely.

Key Terms in this SectionKey terms in this section are defined below. For a complete list, see the Glossary of D&B Terms.

Branches or Divisions

A branch is a secondary location of a business. It has no legal responsibility for its debts, even though bills may be paid from the branch location. It will have the same legal business name as its headquarters, although branches frequently operate under a different trade style. A branch may be located at the same address as the headquarters if it has a unique trade style and unique operations. In such cases, the branch will appear to be a duplicate of the headquarters record.

A division is an operating unit of a business entity with a specific divisional name performing a specific activity normally different than the activity performed at the Headquarters. A division is different than a branch in that the division is operated like a separate and unique entity (it may have divisional officers; however, it is not legally a separate entity).

D&B D-U-N-S® Number A non-indicative, nine-digit number assigned to each business location identified in the D&B database as having a unique, separate, and distinct operation. Maintained solely by D&B, the D&B D-U-N-S (Data Universal Numbering System) Number is used by industries and organizations around the world as a global standard for business identification and tracking. For additional information about D&B D-U-N-S Numbers, including how to obtain a D&B D-U-N-S Number, click here.

D&B Ratings KeyQuickly assesses a company's size and composite credit appraisal. For example, a company rated 3A3 has a worth of $1,000,000 - $9,999,999 based on an interim or fiscal balance sheet, and has a composite credit appraisal of 'Fair'. Click here for the D&B Ratings Key.

Date PrintedIndicates when you printed the report, not when the information was updated.

Employs

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Total number of employees and if noted, at this location.

Financial ConditionProvides an overview of a company's financial statement using the designations "Strong," "Good," "Fair" and "Unbalanced." Financial Condition is calculated by reviewing up to 11 financial ratios and comparing them to industry averages for each of the company's lines of business. Your Business Information Report will reflect the most recent information available in the D&B files.

FinancingDesignated as

● Secured - A portion or all of the following assets have been pledged as collateral; inventory and/or accounts receivable, capital stock in the company or capital stock the company owns in a subsidiary.

● Secured/Unsecured - In addition to any of the 'Secured' provisions, there are also unsecured loans outstanding which may be guaranteed or co-signed by a third party, but are not collateralized by specific assets.

This offers a quick picture of credit already extended to the company, and if assets are available to be pledged to you as a creditor. See the Public Filings, Banking and Finance sections for details.

HistoryDesignated as

● Clear - indicates that certain minimal information necessary for D&B rating consideration is contained in the report. It also means the report is free of negative information which could cause the selection of other History captions or designation as a potential higher-risk case.

● Incomplete - indicates that D&B's file does not contain sufficient information about the background of the business and its significant principals to fully assess risk.

● Management - indicates D&B's file contains certain unfavorable current or historical information on one or more significant principals associated with this company.

● Business - indicates D&B's file contains certain unfavorable current or historical information on this company.

Standard Industrial Classification (SIC)SIC is a standardized numbering system developed by the Federal Government that classifies business establishments according to the industries they belong to. It is particularly helpful when you're looking to segment markets, analyze customer relationships, and conduct general business research.

SIC codes divide all major economic activity into ten major divisions. Businesses are then further classified within each division.

The first two digits in the code represent a company's major industry affiliation and its subdivision. For example, the first two digits in "Manufacturing," one of the ten major SIC divisions, range from 20 to 39. The remaining digits break down the divisions into specific activities and "sub-industries."

If more than one SIC Code is listed, the first one is the company's primary line of business, with others comprising at least 10 percent of the company's revenue. A maximum of six SIC's will be listed for a company. Details can be found in the Operations Section of the Business Information Report.

Started (Control Date)Indicates the year the company started operations, or present management took control.

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SalesProvides a snapshot of a company's financial size in terms of sales/revenue volume. "Projected" indicates an estimated sales volume provided by management; "F" means figures were taken from an income statement. See the Finance Section for details.

WorthThe net worth of the business. "E" indicates figures are estimates provided by the owners, partners or officers of the company; "F" means figures were taken from a financial statement. This element offers another view of the company's financial size. See the Finance Section for details.

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Corporate Family Linkage

D&B LinkageCorporate family relationships are easily identified by Dun & Bradstreet through the use of D&B D-U-N-S

Numbers. D&B calls this product Family Tree Linkage.

Account Linkage, in general terms, is the relationship between different companies within a corporate family. Linkage occurs in the D&B’s files when one business location has financial responsibility for another location.

Since each unit or location of a business may have its own unique D&B D-U-N-S Number, a large organization or company may have many different D&B D-U-N-S Numbers within its corporate “family.”

Other types of family relationships that occur are not linked in D&B’s files because the affiliated company has no legal obligation for the debts of the other company. Examples of these types of relationships include businesses affiliated through common officers or situations where one corporation owns a minority interest in another (50% or less).

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What Is the Finance Section?The finance section includes balance sheets, income statements and management estimates or projections when available. If provided, up to three years of comparative summaries may be displayed here. This data can help you to assess:

● A company's ability to meet short term debt by comparing all liquid assets to current liabilities, or all liquid assets plus inventory to current debt.

● The amount of capital provided by creditors compared to capital invested by the owners.

● The amount of sales compared to total assets of the company.

Commentary on absence of financial information may also appear in this section, for example, "A financial statement was declined by management." An explanation of the financial information may also be provided and include narrative indicating the source of the data (i.e. "Submitted by ..."), as well as an explanation of certain financial statement items. The company may also add other comments in this section, such as "Current cash is low because a recent expansion was financed with cash rather than loans."

For additional help, see Understanding Financial Statements.

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Incidence of Financial Stress

Financial Stress ScoreThe D&B Financial Stress Scoring was designed to help predict a business’s potential for failure. It predicts the likelihood that a company will obtain legal relief from creditors or cease operations without paying all creditors in full over the next 12 months. The Financial Stress Scoring Report provides you with an indication of how the company measures up in relation to other businesses in the D&B information base and within its industry.

D&B defines a financially stressed company as one that:

• Ceased operations following assignment or bankruptcy

• Ceased operations with loss to creditors

• Voluntarily withdrew from business operation leaving unpaid obligations

In receivership, reorganization, or has made an arrangement for the benefit of creditors

Global Failure Risk ScoreDescription:As a general rule, D&B's Global Failure Risk Score predicts the likelihood of a firm ceasing business without paying all creditors in full over the next 12 months. From country to country, there will be variations in this definition. For example, the United States score includes reorganization or obtaining relief from creditors under state/federal law.

The Global Failure Risk Score is defined as a single, uniform measure predicting risk of failure in any included countries. Included countries are defined as those countries that have a statistical model that predicts business failure for companies within that country.

Features:The Global Failure Risk Score is:

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Incidence of Financial Stress

• Only available as a raw score with a 4-digit scale starting from 1001-1850

• Percentile score and risk class will not be available

The Global Failure Risk Score is not the result of a new scoring model. Local Country Scores are mapped to the Global Failure Risk Score based on the probability of failure. Local Failure Risk Scores from the following 14 countries provided the base for the Global Failure Risk Score offering.

Belgium PortugalFrance SpainGermany United KingdomItaly United StatesNetherlands CanadaAustralia DenmarkJapan Hong Kong (end Q4 2002)

Advantages:The Global Failure Risk Score helps you to:

• Evaluate companies from different countries in a logical and consistent manner

• Standardize and automate credit decision-making processes for consistency and for potential cost savings

• Assess exposure globally with a consistent measure of risk across borders

• Identify profitable prospects globally

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Global Failure Risk Score

Global Failure Risk ScoreDescription:As a general rule, D&B's Global Failure Risk Score predicts the likelihood of a firm ceasing business without paying all creditors in full over the next 12 months. From country to country, there will be variations in this definition. For example, the United States score includes reorganization or obtaining relief from creditors under state/federal law.

The Global Failure Risk Score is defined as a single, uniform measure predicting risk of failure in any included countries. Included countries are defined as those countries that have a statistical model that predicts business failure for companies within that country.

Features:The Global Failure Risk Score is:

• Only available as a raw score with a 4-digit scale starting from 1001-1850

• Percentile score and risk class will not be available

The Global Failure Risk Score is not the result of a new scoring model. Local Country Scores are mapped to the Global Failure Risk Score based on the probability of failure. Local Failure Risk Scores from the following 14 countries provided the base for the Global Failure Risk Score offering.

Belgium PortugalFrance SpainGermany United KingdomItaly United StatesNetherlands CanadaAustralia DenmarkJapan Hong Kong

Advantages:

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Global Failure Risk Score

The Global Failure Risk Score helps you to:

• Evaluate companies from different countries in a logical and consistent manner

• Standardize and automate credit decision-making processes for consistency and for potential cost savings

• Assess exposure globally with a consistent measure of risk across borders

• Identify profitable prospects globally

Click here to view scores and ratings tables for businesses outside the United States.

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D&B - What is meant by Government Activity

What is Meant by Government Activity?The government activity indicators in this section provide a snapshot of a company's business dealings with the federal government. This may include information that indicates that the firm:

● is a recipient of government loan assistance, either direct or through guarantees of debt held by banks ● owes (or owed) a debt to the federal government as a result of fines, fees levied for government services, or

overpayment by government agencies for goods or services purchased from the business● is a recipient of government contracts or grants● is excluded from contract work with the federal government, all or in part, due to debarment, suspension of

license, or some other factor(s)

This summary also shows if a business meets specific socio-economic criteria that make it eligible for special consideration in the granting of government contracts.

Details in this section are presented as they were reported to D&B by the federal government and other third party sources.

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What is the History Section?This section typically includes details on the company's history, including

● Incorporation details, par value of shares and ownership information● Background information on management, such as the educational and career history of the company

principals

● Related companies, including identification of parent, affiliates, subsidiaries and/or branches worldwide.

The History Section may also include corporate registration details, which are invaluable when you need to:

● Verify the existence of a registered organization ● Confirm legal information, such as a company's organizational structure, date and state of incorporation ● Research possible fraud by reviewing names of principals and business standing within a state

Business registrations have taken on added importance with revisions to UCC Article 9. Creditors will now be held responsible for the validity and accuracy of UCC statements they file with the Secretary of State. Failure to meet these new requirements may jeopardize legally recognized rights to collateral in secured financing agreements. Minimize your exposure under this new legislation by using Registration details in the History Section to validate your UCC filings.

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What Is the Operations Section?This section provides background information on the business operations of a company. This may include the identity of a parent company, the number of accounts and geographic scope of the business, typical selling terms, and whether the firm owns or leases its facilities. The names and locations of branch operations and subsidiaries may also be identified in this section.

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D&B - What are Key Business Ratios

What are Key Business Ratios?Key Business Ratios measure the relationship between financial values in a company's balance sheet and income statement. They offer a way to evaluate the performance and stability of a business when you're looking to:

● set credit limits and lending terms for new and existing accounts● assess key suppliers● perform competitive analysis, or● research the financial standing of a potential business partner or acquisition candidate.

Industry Norms for these ratios provide a side-by-side comparison of a business with it's industry peers. These norms can help you spot important trends, identify strengths and weaknesses, or serve as a benchmark for evaluating company risk.

Industry Norms are based on the SIC code of the company you are inquiring on, as well as the firm's geographic location and total asset size, when available. They represent median statistics derived from D&B's financial statement database of public and private companies, which is updated on a quarterly basis.

The Business Information Report features four Key Business Ratios and their corresponding Industry Norms:

● Return on Sales measures the percentage of after tax profits per dollar of a company's annual sales. ● Current Ratio shows the extent to which shortterm debt obligations are covered by working capital assets. A

minimum 2:1 ratio indicates sound financial strength; however, this standard may vary by industry segment.● Assets to Sales quantifies how efficiently a business is using its assets to generate revenue. If the

percentage is abnormally high, it may indicate the business is not aggressive enough in its sales efforts, or that its assets are not fully utilized. A low ratio may indicate a company is selling more than can be safely fulfilled by its assets.

● Total Liabilities to Net Worth shows how company debt relates to the equity position of owners or shareholders. The higher this ratio, the less protection there is for creditors of the business.

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What is the Payment Detail Section?The Payment Detail Section displays a listing of recent payments reported to D&B. Each line (up to 80) provides the most recent information secured through company trade tapes and other D&B data collection methods. It's important to note that an unusually large number of transactions during a single month or time period may indicate a seasonal purchasing pattern.

The following manners of payment appear most frequently in this section:

● Antic - payments are received prior to date of invoice (Anticipated).

● Disc - payments are received within trade discount period (Discount).

● Ppt - payments are received within terms granted (Prompt).

● Slow - payments are beyond vendor's terms. For example, "Slow 30" means payments are 30 days past due.

● Ppt-Slow - some invoices are paid within terms, while others are paid beyond terms.

● (#) - indicates that no manner of payment was provided; the number merely reflects the line where it appears in the listing. For example, (004) means it is the fourth experience listed.

● Payment Commentary, such as "Cash in Advance," "Account in Dispute," "Credit Refused," or "Placed for Collection" may also display next to trade details. "Placed for Collection" means the account was forwarded to a third party for collection action during the past year.

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What is the Payment Summary Section?This section highlights how quickly a company is likely to pay its bills in the future by reviewing its payment patterns with other vendors in the past, as reported to D&B. Payment performance is outlined relative to aging, dollar amounts, and industry groupings. Specific information includes:

● The D&B PAYDEX® Score: D&B's unique dollar-weighted numerical indicator of how a firm paid its bills over the past year, based on trade experiences reported to D&B by various vendors. The D&B PAYDEX Score ranges from 1 to 100, with higher scores indicating better payment performance.

● Payment Summary by Industry: An overview of how a firm pays suppliers in up to 10 lines of business where it has recorded the highest number of credit transactions. This information can help you evaluate how quickly you can expect to be paid, based on a company's payment history with your industry peers.

● Other Payment Categories: Miscellaneous indicators of a firm's payment habits, including the highest dollar amounts owed; the highest dollar amounts past due; number and dollar value of cash payments and placed for collection experiences.

D&B PAYDEX® Score Key

Use this key to help you interpret the D&B PAYDEX Score:

Key to the D&B PAYDEX® Score

PAYDEX Payment 100 Anticipate90 Discount80 Prompt70 15 Days Beyond Terms60 22 Days Beyond Terms50 30 Days Beyond Terms40 60 Days Beyond Terms30 90 Days Beyond Terms20 120 Days Beyond Terms

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UN Unavailable

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What is the Payment Trends Section?Payment history, involving recent and current customers, is important information since it is an indication of the suppliers ability and willingness to pay now and in the future. Trend of payments often tells a revealing story about the financial condition of the company. Often, if the payment trend is downward, this is the first sign of impending cash flow problems which could ultimately lead to financial difficulty which could potentially impact the quality of the product or service purchased. In the case where there is a management change, for example, past relations with the supplier may have been excellent, however a change in payment trends upon new ownership may occur.

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What is Included in the Public Filings Section?This section informs you of past and present legal activities that could impact a company's financial stability and operations.

Public filings can include bankruptcies, lawsuits, liens, judgments and Uniform Commercial Code (UCC) statements, which contain details on assets pledged as collateral in secured financing agreements. Public record information is collected from multiple sources in all 50 states and the District of Columbia. In addition, D&B covers all federal bankruptcy courts and tracks nearly all business-related failures filed in the U.S.

The following are the types of filings that may appear in a report:

BankruptcyA proceeding under the U.S. Bankruptcy Code, in which either a debtor files a bankruptcy petition and voluntarily seeks protection from creditors, or in which creditors file a bankruptcy petition against a business debtor to force the debtor to pay monies owed them. A chapter 7 proceeding liquidates the assets to pay the debts. All other chapter proceedings attempt to repay creditors without liquidation. A bankruptcy filing may convert from one chapter to another or be dismissed by the court if the bankruptcy filing is deemed invalid.

Judgment The final decision of a court resolving a dispute and determining the rights and obligations of the parties. A judgment may or may not have been initiated through a lawsuit. Judgment satisfaction occurs when the rights of the prevailing parties have been restored and any obligations have been paid. A staisfaction of judgment is then filed with the court of record. Vacated judgments are considered cancelled or rescinded. Stayed judgments are suspended and prevailing parties are refrained from enforcing it of for the time period designated by the court.

LienA claim a creditor holds against specific property of a debtor as security for satisfaction of a debt. A lien can be filed in any jurisdiction where the debtor owns property. The same lien may be filed at multiple recording offices and may be assigned a new filing number at each location. The claim may arise from such things as unpaid taxes or a court judgment. Once the creditor receives what is due to him, a release or satisfaction of the lien claim may be filed with the court which, in effect, removes the claim or encumbrance.

Suit A proceeding filed by a plaintiff(s) against a defendant(s) in a court of law, in which the plaintiff(s) seeks monetary and/or non-monetary relief. A suit may result in a dismissal or be disposed of without trial if the issues if the claims are deemed invalid. A dismissal with prejudice barrs the complaintant from filing a future action on the same claim. A dismissal without prejudice provides the complaintant the right to sue again on the same cause of action.

UCC (Uniform Commercial Code) FilingUCC (Uniform Commercial Code) Filing A legal document creditors use to secure their rights to collateral

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specified in a secured financing agreement. This document, which the creditor files with the appropriate state authority (Secretary of State office), gives the creditor a legally recognized interest in the collateral until payment is received in full. It also provides legal title to these assets in the event a debtor suffers financial hardship and is unable to meet its promise to pay.

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Risk Score Analysis

Risk Score AnalysisThe Risk Score Analysis includes explanation of payment trends (Paydex®), Public Filings (suits, liens, judgments etc.), bankruptcies , history and financial commentaries.

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D&B - SIC and NAICS

What are SIC and NAICS? The Standard Industrial Classification ("SIC Codes") and North American Industry Classification System ("NAICS Codes") are universal numbering methods that help identify the industry affiliation of a company. Both codes are provided in the Business Information Report for your convenience.

SIC Codes

Standard Industrial Classification codes were developed by the Federal Government in conjunction with the U.S. business community during the 1930's. They've proven to be a useful tool for professionals looking to segment domestic markets, analyze customer relationships, and conduct general business research.

SIC Codes divide all major economic activity into ten major divisions. The first two digits describe the nature of this activity in very general terms (i.e. Mining, Construction, Manufacturing). Remaining digits break down these categories into specific products and "sub-industries."

If more than one SIC Code is assigned to a company, the first one listed is the primary line of business. The remaining codes, if any, comprise at least 10 percent of the firm's annual revenue.

NAICS Codes

The North American Industry Classification System was introduced in 1997 as a replacement for SIC Codes and now serves as the standard for the three NAFTA countries of Mexico, Canada and the U.S.

Developed at the urging of leading business economists, NAICS (pronounced "nakes") offers classifications that more closely reflect the many new industries that have re-shaped the U.S. and global economy.

NAICS differs from SIC in that it focuses on business processes rather than on end products. It also captures many service industries currently under-represented in the SIC system.

Like the SIC Code, NAICS is organized into hierarchical classification groups that build from the detailed industry level. The United States, Canada and Mexico share the first five digits within the NAICS structure. The sixth digit is designed for country specific classifications and may differ from one nation to the next. However, the three countries have agreed to use many of the same six-digit designations.

While the old SIC Codes are still widely used, the Federal Government will no longer support and maintain this system. However, D&B will continue to append them in data collection and maintenance of company files.

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D&B - SIC and NAICS

For additional information on NAICS, click here.

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What is the Special Events Section?Special Events alert you to any recent developments D&B learns about that may impact your potential relationship with a firm, such as bankruptcy filings, changes in ownership, acquisitions and other events. Information reported in this section may also include announcements on the release of earnings reports.

Special Events may help explain unusual company trends. For example, a change in ownership could have an impact on manner of payment, or decreased production may reflect an unexpected interruption in factory operations (i.e. labor strike, fire).

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What Is the Statement Update Section?This section includes information D&B has obtained directly from the company since our last full interview with the principals of the business. It may include pertinent information such as updated financial data, commentary on recent business trends or operating details.

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payment information or incomplete history indicator.● DS (DUNS Support): This indicates that the information available to D&B does not permit us to classify the

company within our Rating Key. When ordering these reports, an investigation can be performed and results sent to you at your request for an additional fee.

● INV (Investigation Being Conducted): When an "INV" appears, it means an investigation is being conducted on this business to get the most current details.

Based on Worth from Interim or Fiscal Balance Sheet

Rating Classification Composite Credit Appraisal High Good Fair Limited5A $50,000,000 to and over 1 2 3 44A 10,000,000 to 49,999,999 1 2 3 43A 1,000,000 to 9,999,999 1 2 3 42A 750,000 to 999,999 1 2 3 41A 500,000 to 749,999 1 2 3 4BA 300,000 to 499,999 1 2 3 4BB 200,000 to 299,999 1 2 3 4CB 125,000 to 199,999 1 2 3 4CC 75,000 to 124,999 1 2 3 4DC 50,000 to 74,999 1 2 3 4DD 35,000 to 49,999 1 2 3 4EE 20,000 to 34,999 1 2 3 4

FF 10,000 to 19,999 1 2 3 4

GG 5,000 to 9,999 1 2 3 4HH up to 4,999 1 2 3 4

Based on Number of Employees when financial statments are unavailable

Rating Classification Composite Credit Appraisal

Good Fair Limited1R 10 and over 2 3 42R 1 to 9 2 3 4

Key to Employee RangeApplicable to lines of business not covered by the D&B Rating systemER1 1,000 or moreER2 500 to 999ER3 100 to 499

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ER4 50 to 99 ER5 20 to 49ER6 10 to 19 ER7 5 to 9ER8 1 to 4ERN Not Available

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What is the Summary Analysis Section?This section displays the current D&B Rating, when it was assigned and why. Additional content may include rating changes that have occurred during the past year so you can spot trends and evaluate the stability of a firm over time.

Key to the D&B RatingThe D&B Rating can help you quickly assess a firm's size and composite credit appraisal, based on information in a company's interim or fiscal balance sheet and an overall evaluation of the firm's creditworthiness.

The "5A" to "HH" Rating Classifications reflect company size based on worth or equity as computed by D&B. Company size can be an effective indicator of credit capacity. These Ratings are assigned to businesses that have supplied D&B with a current financial statement.

The Composite Credit Appraisal is a number, 1 through 4, that makes up the second half of the company's rating and reflects D&B's overall assessment of that firm's creditworthiness. The Composite Credit Appraisal is based on D&B analysis of company payments, financial information, public records, business age and other important factors (when available).

Note: A "2" is the highest Composite Credit Appraisal a company not supplying D&B with current financial information can receive.

The "1R" and "2R" Rating categories reflect company size based on the total number of employees for the business. They are assigned to company files that do not contain a current financial statement.

ER (Employee Range) Ratings apply to certain lines of business that do not lend themselves to classification under the D&B Rating system. Instead, we assign these types of businesses an Employee Range symbol based on the number of people employed. No other significance should be attached to this symbol.

For example, a rating of "ER7" means there are between five and nine employees in the company. "ERN" should not be interpreted negatively. It simply means we do not have information indicating how many people are employed at this firm.

The D&B Rating field in a report may also display the following designations when certain conditions are present:

● The '- -' Symbol: This represents the absence of a D&B Rating and should not be interpreted as indicating that credit should be denied. It means that the information available to D&B does not permit us to classify the company within our Rating Key and that further inquiry should be made before reaching a credit decision. Some reasons for using the "- -" symbol include: deficit net worth, bankruptcy proceedings, lack of sufficient

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Supplier Evaluation Risk Score

Supplier Risk ScoreThe Supplier Risk Score (SER) predicts the likelihood of a firm ceasing business without paying all creditors in full, or reorganizing or obtaining relief from creditors under state/federal law over the next 12 months. The score is calculated using a statistically valid model derived from D&B's extensive data files.

Financial Stress Score percentile is the basis for the Supplier Risk Score. Once the Financial Stress Score percentile has been calculated for a business, a secondary set of rules and exception rules are applied to determine the Supplier Risk Score Score.

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UNSPSC Codes

UNSPSC CodesThe United Nations Standard Products and Services Code is a classification convention that is used to numerically identify products and services.

It is an efficient, accurate and flexible classification system for achieving company-wide visibility of spend analysis, as well as, enabling procurement to deliver on cost-effectiveness demands and allowing full exploitation of electronic commerce capabilities.

The UNSPSC™ was developed jointly by the UNDP (United Nations Development Programme) and D&B (Dun & Bradstreet Corporation) in 1998.

The UNSPSC™ is a hierarchical classification with five levels. These levels allow you to drill down or up to analyze expenditures at the level relevant to your needs. For example, the commodity “Ink refill” is part of a class of products “Ink and lead refills”, which in turn is part of a family of products “Office supplies”. Multiple families—like “Office supply”—compose a segment of products, “Office Equipment and Accessories and Supplies”. Each level in the hierarchy has its own unique number.

Hierarchy Category Number and Name

Segment 44 Office Equipment, Accessories and Supplies

Family 12 Office supplies

Class 19 Ink and lead refills

Commodity 03 Pen refills

“Pen refills” = UNSPSC classification 44-12-19-03.

Fifth level identifies the Business Function such as Rental or Lease, Maintenance or Repair etc.

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Supplier Evaluation Risk (SER Rating)

Supplier Evaluation Risk (SER Rating)The Supplier Evaluation Risk (SER Rating) predicts the likelihood of a firm ceasing business without paying all creditors in full, or reorganizing or obtaining relief from creditors under state/federal law over the next 12 months. The rating is derived from D&B's Financial Stress Score that is calculated using a statistically valid model derived from D&B's extensive data files. Financial Stress Score percentile is the basis for the SER Rating. Once the Financial Stress Score percentile has been calculated for a business, a secondary set of rules are applied to determine the SER Rating.

Following table explains SER rating's relation to the failure rate for different countries where SER ratings are currently available.

For example: For U.S. a business with SER rating of 1 has .08 percent probability of ceasing business without paying all creditors in full, or reorganizing or obtaining relief from creditors under state/federal law over the next 12 months as for Germany SER rating of 1 has a .12 probability.

SER Rating Local Country Bad Rate by above Score Ranges

US Netherlands Belgium UK Italy Portugal France Spain Germany Canada Austria Japan Australia Denmark

1 .08 .07 .06 .12 .06 0.00 .03 .04 .12 .12 .07 .04 0 .2

2 .21 .16 .25 .22 .25 .32 .16 .08 .20 .13 .18 .05 .18 .29

3 .41 .39 .32 .34 .46 .44 .37 .17 .49 .38 .40 .06 .49 .41

4 .81 .81 .8 .85 .89 .56 .94 .67 .95 .76 .82 1.00 .86 .8

5 1.37 1.66 1.56 1.47 1.39 .97 1.91 2.64 1.61 1.59 1.61 1.6 1.41 1.36

6 2.86 2.48 2.12 2.23 2.01 1.0 2.71 2.55 2.45 2.68 2.50 2.36 1.96 2.69

7 4.64 4.27 3.57 4.10 3.49 6.88 3.39 3.95 3.62 4.72 4.94 3.38 3.31 4.62

8 8.31 5.95 7.79 7.68 8.05 16.42 7.05 7.16 6.61 7.14 6.54 8.39 7.36 5.9

9 35.77 12.60 26.67 23.20 30.99 37.96 18.23 11.24 11.25 15.71 15.82 19.24 20.01 9.05

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