RapidRatings understands that as a private equity-backed company, you have non-cash expenses that have an effect on the profit & loss statement and may negatively impact the FHR score.
Being private equity-backed will not be factored in when we assess your company. Our rating methodology is purely quantitative, meaning we do not take into consideration what we would define as qualitative factors such as growth pace, age, size, specific cash sweep agreements, or ease of access to capital in this case.
We assess periods individually using only information presented on your financial statements, and all ratios are calculated the same for every company based on the industry they are classified in, which enables us to rate every company on level terms.
A goal of our reports is to encourage collaborative discussion with your customers, and any additional information that is supplemental to the FHR score is helpful during these conversations.
ActionPath will also allow you to simulate scenarios and relay to your customers what pro forma results could look like with changes to certain financial line items.