April 20, 2016
Rapid Ratings targets infrastructure build out and expansion of products for assessing public and private companies’ financial health
Rapid Ratings International, creator of the proprietary FHR® (Financial Health Rating), the industry’s leading assessment of public and private company financial health, secured a minority investment from private equity firm LLR Partners.
Rapid Ratings uses a quantitative system to provide a predictive view of a company’s financial stability, operating efficiency and default probability, delivered on a consistent 0–100 scale. The FHR® factors more than 70 performance ratios from a company’s financial statements, calibrated to 24 different industry models to produce an in-depth analysis of its strengths and weaknesses. Hundreds of leading organizations across multiple industry verticals rely on the FHR® to understand the financial stability of and manage risks associated with their key business counterparties, third parties, suppliers and investments.
“Fortune 500 companies, among many other public and private corporations and financial institutions, leverage Rapid Ratings’ unique methodology every day to make critical decisions about their customers, suppliers and investments,” said Howard Ross, partner at LLR Partners. “We’re excited by the company’s impressive client base and commitment to innovation, and we look forward to helping support their growth.”
“LLR shares Rapid Ratings’ vision for our next phase of growth,” said James H. Gellert, CEO of Rapid Ratings. “They bring extensive experience and a collaborative approach that will help us execute on our plans to expand our franchise through innovation and to provide the most accurate financial health assessments of public and private companies globally.”
Mr. Gellert noted that teaming up with LLR enables Rapid Ratings to build out its infrastructure and accelerate its product roadmap, which includes new analytics and products due later this year for financial services and corporate clients.
Rapid Ratings delivers predictive, actionable insight on a company’s long-term stability, regardless of size, industry, or geographic location, giving clients ample time to mitigate risk and capitalize on opportunity in three core areas:
Third-Party and Supplier Risk Management: Assess the financial strength of suppliers, vendors and other third parties, detect early warnings of disruptions to existing operations, and identify opportunities for strategic business relationships.
Corporate Credit Risk Management: Help corporate credit professionals understand the financial viability of their customers, extend and price credit more efficiently, and avoid the negative impact caused by a customer default.
Financial Services Investment Risk and Compliance: Enable financial institutions to identify investment and underwriting opportunities, manage risk and meet regulatory requirements. Rapid Ratings is a subscriber-paid ratings firm that avoids all conflicts of interest embedded in the traditional, issuer-paid ratings business.