Rating scale

The DNotch rating scale

A DNotch or digital notch is composed of two components: (1) a grade and (2) a tier.

Grade Description Tiers
S
  • S for proof of Stability
  • Investment grade
Default risk is acceptable. Companies should prove that they can maintain stability in their business revenue. 0 to 9, S0 is the highest rating possible.
O
  • O for proof of Operations
  • Upper level of speculative grade
Default risk is not negligible. Because of the specificity of the industry they belong or because of exceptional reasons, the revenues of the majority of companies in this grade are depending on the good execution of mid to long term projects. Investors should not consider investing significantly in this category. 1 to 6
F
  • F for proof of Fundamental or Financial
  • Distressed grade
The default risk is significant. Companies should prove that their fundamental an financial are viable. Investors should differentiate growing companies from the one who are falling. Only qualified investors should consider investing in this category. 1 to 9
I
  • I for proof of Idea
  • Venture capital and startup grade
The default risk is highly significant. Companies should prove that their concept idea is viable. Only qualified investors should consider investing in this category. 0 to 6, I0 corresponds to venture capital mezzanine stage.

Extension of the standard rating scale

The standard rating scale (Moody's, Fitch) is AAA, (almost no default), AA1, AA2, AA3, A1, A2, A3, BBB1, BBB2, BBB3, BB1, BB2, BB3, B1, B2, B3, CCC1, CCC2, CCC3, CC, C and D (default) rating note. This range is used for companies with already established businesses. We have extended Category CC and introduced VC (Venture Capital) and FFF (Fools, Friends, Families) categories to represent the distinct phases of start-up and venture capital investment.
Grade DNotch Extended rating
S S0
S1, S2, S3
S4, S5, S6
S7, S8, S9
AAA
AA1, AA2, AA3
A1, A2, A3
BBB1, BBB2, BBB3
O O1, O2, O3
O4, O5, O6
BB1, BB2, BB3
B1, B2, B3
F F1, F2, F3
F4, F5, F6
F7, F8, F9
CCC1, CCC2, CCC3
CC1, CC2, CC3
C1, C2, C3
I I0,
I1, I2, I3
I4, I5, I6
VCM (mezzanine)
VC1, VC2, VC3
FFF1, FFF2, FFF3