Common Financial Data Submission Issues

Issue: Financial data must be dated within the past 12 months. Financial data dated over 12 months is insufficient and will not allow a rating to be completed.
​Solution: Please provide financial data dated within the past 12 months.

Issue: Your company's rating is already rated through the period provided.

Solution: More recent financial data must be provided to update the rating. We do not rerate an already rated period. If full year accounts are not available, you may provide interim data based on trailing 12 months.

Issue: The liabilities figures submitted do not break the portions of debt for short term and long term liabilities. We need to know how much of the liabilities (current and long-term) are specific to loans, borrowings, and financing.
​Solution: Please ensure that the financial data includes the debt portions of current and long-term liabilities. A rating cannot be completed without those figures.

Issue: The interest expense figure is not specifically included or a net figure of Interest Expense and Interest Income is provided.
​Solution: Please provide the interest expense figure for each period provided.

Issue: A cash figure was not included in the submission.
​Solution: Please provide a Cash and Cash Equivalents figure for all periods provided.

Issue: The net income figures on the income statement and cash flow statement do not match for the specific financial period date.
​Solution: Please review the financial data to ensure that the net income matches across the financial statements.

Issue: The balance sheet does not balance.

Solution: For the balance sheet to balance, total assets must equal total liabilities plus equity

Issue: The liabilities are not broken out to display the portions of debt due within one year and due after one year.
​Solution: Please provide a breakout of current (due within one year) and long-term (due after one year) liabilities for period dates needed
(Le détail de l'état des dettes pour les périodes de 202X (Échéances à moins d'un an, Échéances à plus d'un an).

Issue: We've identified a gap in the rated periods. Example: your company is rated through 12/31/2023 and you only submit financials for 12/31/2025. The gap is the 12/31/2024 period.

Solution: Please avoid any gaps in the rating by providing the most recent period available including any previous year-end periods that have not been rated.

Issue: The financials are broken up into a “Successor” and a “Predecessor” period.

Solution: If the predecessor and successor periods are not comparable, please provide at least 9 months of data starting from Successor start date through at least 9 months post Successor start date.

Issue: the financial statements indicate that the Successor and Predecessor periods are not comparable. Therefore, we will need to rate the successor period separately.
​Solution: Please provide a minimum of 9 months of data from the Successor start date through 9 months post Successor start date in order to produce a rating for Company Name.

Issue: The Balance Sheet, Profit & Loss Statement, and Statement of Cash Flow dates on the interim period date provided do not match.
​Solution: Please provide all interim period statements with corresponding dates.

Issue: Future dated financials were submitted.
​Solution: RapidRatings does not accept projected or forecasted data and thus, can you please provide the most recent year end or interim data available?

Issue: The balance sheet contains a negative liability Line Item figure
​Solution: Please review why the figure is negative and reallocate this figure (perhaps as an Asset)?

Issue: We have previously rated Entity A, whereas the financials provided are for Entity B.

Solution: In order to keep our reporting consistent, please provide updated financials for rated Entity A.

Issue: We have previously rated the entity level financials whereas the financials provided now are for the Parent company.
​Solution: In order to maintain consistency in our reports, please provide the standalone entity level financials for requested entity.

Issue: The Cash from Operations figure is the same figure as Total Cash & Cash Equivalents on the Balance Sheet. By “Cash From Operations”, we are looking for the “Net Cash from Operating Activities” found on the Statement of Cash Flows.

Solution: Please review and correct the figure for cash from operations.

Issue: We have previously rated your company using currency A, whereas the financials provided are now in currency B.
​Solution: To proceed and keep our reports consistent, please provide the financial data in currency A.

Issue: The Total Assets were not broken out into Current Assets and Term Assets on the Balance Sheet.
​Solution: Please provide a breakout of Total current and Total Long-Term Assets and ensure that together they equal Total Assets

Issue: All liabilities are labeled as debt. In the debt category, we are specifically looking for provided capital in the form of any loans, borrowing, or financing.
​Solution: Given this description, please provide corrected figures for the Balance Sheets.

Issue: Our models are strictly designed for operating companies, and the FHR score is a rating based on the scope of the company’s operational activities.
​Solution: We are unable to rate non-operational companies

Issue: After review, we noticed significant differences between the financials provided and what was previously used to generate the report. It could be due to corporate structure change, standalone vs. consolidated financials, or accounting change, etc.
​Solution: Can you please clarify and ensure that the data provided is consistent with what was previously provided?

Issue: The submitted document is password protected
​Solution: Please provide the password or avoid submitting a protected document.

Issue: We noticed inconsistencies in the reporting basis throughout the financial statements provided.
​Solution: Please ensure that all the financials provided are reported using the same accounting basis (cash/accrual/tax). Please note that Accrual basis is the preferred method of accounting.

Issue: Tax statements were submitted rather than full financial statements. Tax returns do not provide enough data to produce a rating.
​Solution: Please provide your full financial statements, including profit and loss statement, balance sheet, and cash flow statements

Issue: For companies operating in India, debt was insufficiently reported
​Solution: Please provide a breakout of the Unsecured and Secured Loan into Current (due within one year) and Long-Term (due greater than one year)

Issue: Your Profit & Loss statement does not contain all the necessary information to produce a rating
​Solution: Please provide the Net Income or Net Profit After Tax figure

Issue: Debt was insufficiently reported
​Solution: Please provide a breakout of current (due within one year) and long-term (due after one year) liabilities.