Rating procedure

Developed specifically for small and medium-sized enterprises, the procedure applied by GBB-Rating produces an objective, verifiable and professional credit assessment that pays due regard to the subject's individual characteristics while focusing on a forward-looking analysis.

Alongside the statutory, political and socio-economic climate, the financial profile, and the structure and form of business management and control, both quantitative and qualitative criteria are applied in a comprehensive analysis that gives appropriate consideration in particular to the industry-specific characteristics of the sales and procurement markets, of the product and service offerings, those relating to suppliers and customers, and of the production and performance process.

Apart from analyzing the relevant success and risk factors, especially those relating specifically to the industry and individual enterprise, the procedure also gives consideration to the institution's development both over time and in comparison with competitors (benchmarking).

The rule-based rating system of GBB-Rating encompasses two components, namely "financial profile" and "business profile".

When the financial profile is examined, the financial data are assessed by expertly analyzing the annual financial statements using logistic regression techniques. The data are supplemented by figures for the current year. The analysis of the financial profile estimates the probability of default, expressed as a financial rating.

The business profile is evaluated by analyzing chiefly qualitative and forward-looking external and internal influencing factors. The main criteria are market factors, organizational aspects and the risk profile. To facilitate an objective assessment, these criteria are subdivided into individual attributes. In particular when the business profile is being examined, the particularities of the industry and individual enterprise are assessed.

The intermediate scores arising from the analysis of the financial and business profiles are finally aggregated using a mathematical function to obtain an overall score or combined result. This method ensures objectivity. Given the forward-looking nature of the business profile, it is assigned special significance in this context.

Practice has demonstrated the ability of the GBB rating system to reflect and assess different business structures appropriately and in a comparable manner.

Further information on the rating methodologies of GBB-Rating is available in the section Publications and press.

Financial profile

When interpreting the financial data, the analysts have at their disposal a comprehensive rating manual.

The rating data produce a set of indicators that is examined with a logistic regression function. The sector of the economy in which the company operates (manufacturing, trade, services, construction) plays a key role in this context. The outcome of this function (the natural logarithm of the odds, or "logit") is the key element when the financial profile is being assessed.

With a view to accurately reflecting the earnings position at the time of the rating and to include deviations from the long-term business trend in the rating result, the analysis of the financial profile also gives consideration to current interim figures.

After calibrating the regression values on an extensive data pool, the updated logit is assigned an estimated probability of default. A comparison of the estimated probability of default with the empirical default rate reveals the goodness of fit of the regression equation.


The business profile is evaluated by analyzing chiefly qualitative and forward-looking external and internal influencing factors. Supporting indicators are used to perform plausibility checks on the analyses and evaluations. The assessed attributes are integrated according to a defined standard, which can be adjusted for business model particularities. This strategy achieves the necessary objectivity while offering the flexibility required to give appropriate consideration to specific features.




Publications and pressRating process

Rating scale




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