The FHR®

The FHR is a forward-looking, comprehensive financial health rating that provides clients with a thorough, objective view of a company’s financial health, risk of default, and unique insights critical to understanding public and private companies.

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Unmatched accuracy and predictive power. The industry standard for financial health.

The Scale & Risk Levels

Very Low Risk

Probability of Default: Less than 0.007%

Very Low Risk companies are the strongest and most resilient companies in the short term. In general, they make for the most reliable business partners and have the greatest potential for opportunity and growth.

Low Risk

Probability of Default: 0.008–0.1%

Low Risk companies, like Very Low Risk companies, are financially healthy, strong, and resilient in the face of economic and geopolitical challenges. Their FHR suggests high levels of efficiency and a strong foundation, supporting long-term viability and sustainable performance.

Medium Risk

Probability of Default: 0.11–0.89%

Medium Risk companies have acceptable levels of efficiency in the short term but may show signs of deteriorating financial health or other internal challenges. To be a viable partner in the long term, they may need to improve.

High Risk

Probability of Default: 1–11.4%

High Risk companies are experiencing low levels of efficiency and unsustainable business practice. Risk mitigation action is highly recommended to avoid disruptions and losses.

Very High Risk

Probability of Default: Greater than 13.3%

Very High Risk companies have the weakest financial health, lack sustainability over the long term, and are likely to default. In order to avoid immediate disruption, take urgent steps to mitigate risk.

How is the FHR calculated?

The FHR is determined through a combination of near- and long-term resilience and efficiency indicators. The algorithms are fueled by 12+ million company-years of financial data across dozens of industry-specific models.
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Fortune Brands & RapidRatings

See how Fortune Brands used RapidRatings' data to evaluate their global private suppliers to stop supply chain disruption—before it happened.

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Get a free FHR Report

See how you can utilize the FHR to manage risk associated with your counterparties, including: vendors, suppliers, and third party partners.
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