The Industry’s Leading Assessment of Company Financial Health
The FHR is a quantitative system used to rate the financial health of corporations and financial institutions, measured on a straightforward and consistent 0-100 scale. Our proprietary methodology factors 70+ performance ratios, calibrated to 24 different industry models to provide a predictive view of the financial stability, operating efficiency, and default probability of public and private companies.
In-depth analysis of a company’s strengths and weaknesses enables clients to understand the financial stability and manage risks associated with their key business counterparties, third-parties, and suppliers, globally.
What Makes Us Different
The FHR is not designed like other solutions. The FHR measures a company’s probability of default and provides insight into its absolute and relative ability to compete with its global industry peers. With the assignment of its FHR comes the company’s precise ranking among and distance from its competitors. Comparing the company’s present rating to past ratings illustrates its financial health trend.
How the FHR Differs From Other Ratings
- Unique in quality and scale: Our data set is significantly more robust than other products. Calibrated with 30+ years of data from over 300,000 companies globally, across 24 industries, means 9 million company years’ worth of financials – far more than other ratings systems. The extent of our database allows us to profile a company – against its global industry peers and across business cycles – to understand trends. Our data shows what the best companies look like in the strongest economies, the worst companies in the weakest economies, and everyone in the middle of that scale.
- Conflict free and independent ratings: Unlike agency ratings products we have no contact with the companies we rate in the ratings process. We receive no fees from them and do not interact with their bankers or other representatives. For our subscribers, this offers confidence that our ratings are unbiased, consistently generated with integrity and can pass the highest scrutiny for best practices and corporate governance in risk management
- Exclusively based on ratio analysis: The FHR is a strictly quantitative, market-indifferent baseline assessment of financial health. The FHR does not use any market inputs, unlike Merton‐based analytical systems which use market inputs such as volatility, CDS spreads or stock prices.
- Rating model equity: Our ratio-based analysis allows us to rate publicly and privately-held companies on the same basis. We are the only firm to rate public and private companies on the same basis, globally. This gives our clients the ability to assess any company with the same depth of analysis, laying a superior foundation for making risk management decisions.
- Ease of use: Rapid Ratings complements our FHR with key performance scores and extensive commentary detailing the company’s trending strengths and weaknesses. Many of our competitors provide a rating that is difficult to interpret and near impossible to justify. Our ratings are presented in reports that are clearly formatted, include graphical, tabular and textual presentations, and are tailored for a variety of financial analysis levels and perspectives.