Financial Health Rating for Private Companies
Firms spend a great deal of time and effort in building a reliable and robust risk management program. One of the factors that is frequently overlooked is the critical importance of consistency in analysis between public and private company ratings. With decision making processes becoming increasingly complex, ranking companies on an equal basis provides you with a consistent foundation on which to build your risk management program. Rapid Ratings is the only company to rate public and private companies on the same basis, globally.
Accurate & Consistent Model for Assessing Private & Public Companies
Don’t rely on ratings for private companies that may contain inconsistent data. Many ratings may be based on broadly self-disclosed financial statement data, which provides limited financial data over limited time periods. Publicly-available records on private companies can be misleading and do not provide a comprehensive picture of financial health. Primary source, financial data on private companies is the most accurate, insightful and replicable way to evaluate a private company.
Similarly, basing your analysis on historical payment data can lead to inaccurate analysis, as it does not show the financial stability of your private counterparties. These antiquated solutions providers who evaluate the probability of default based on this sporadic payment history, addresses, company identification numbers or other miscellanea on private companies, do not meaningfully support your risk management decisions. Rapid Ratings has the leading solution globally to empower clients to understand their private company relationships.
Whether you are evaluating customers, trading counterparties, suppliers, vendors, or investments, make sure your private company assessment has the same depth of analysis as your public company analysis. Use our solutions for an apples-to-apples comparison of public and private companies from around the world.
Understanding How Privately-Held Companies Are Ranked
Rapid Ratings is uniquely positioned to provide you with actionable, robust financial assessments for privately-held companies. Our methodology for private company ratings is exactly the same as our methodology for public company ratings – the same 70+ ratios are used to assess a company’s financial health. You will always receive the same depth of analysis, detailed reporting, and comprehensive analysis, regardless of the ownership structure of the company.
Our private company ratings are always based on comprehensive analysis of a firm’s financial statements. Rapid Ratings provides several options for providing the necessary financial information. Clients can enter financial information directly themselves or rely on our Data Analysis team to input financials. For clients who prefer that Rapid Ratings control the whole process, we will work directly with your partners to collect the required data with our Financial Statement Sourcing services. In all cases, our private company ratings are strictly confidential and you can put your mind at ease with our secure portal.
- Apples-to-apples comparisons for public and private companies on the same basis across industries, globally
- Same depth of analysis, detailed reporting, and comprehensive analysis for publics and private companies
- Peer benchmarking reports helps measure financial health within a given industry sector
- Strict confidentiality for privately held company ratings
- No other company in the world provides this powerful service