Librarians and publishers are rightly concerned with the financial stability of their partners.
We at EBSCO expect customers and publishers to regularly verify their partners’ financial situations in order to protect their interests. We want to assure you that EBSCO continues to be financially very strong, and we offer as evidence third party verification by the financial rating service Dun and Bradstreet. EBSCO continues to be rated 5A1 by Dun and Bradstreet – its highest possible rating. Their rating is described as follows:
“The Financial Strength Indicator is calculated using either the Net Worth or Issued Capital of the Subject Company. If both figures are available, then the Net Worth is always used to calculate the Financial Strength.” In the case of EBSCO, “5A” is “Based on Net Worth” and tops the list of approximately 30 tiers of rating.
In terms of the suffix of this rating (in EBSCO’s case the “1”), D&B refers to this as “The Condition Code or Risk Indicator”. Per the D&B web site, “This is calculated by taking into account key items within the Business Information report which are used to predict the likelihood of a business failure.” The site offers a more detailed description of each numerical indicator, including the “strong condition (1)” that EBSCO receives: “Strong Condition ( 1 ) -- This is assigned to companies of undoubted credit standing and financial strength.”