The Experian Financial Stress Rating is calculated by a statistically derived algorithm designed to determine risk based on multiple factors including: tradeline and collections information, public filings as well as other variables to predict future risk.

For example, in the table above a company with a Low-to-Medium Risk Rating will have a 1.11% of going into bankruptcy or severe financial distress in the next 12 months. A company with a High Risk Rating of 5 will have 35.27% chance of going into bankruptcy or severe financial distress in the next 12 months.