RapidRatings is a financial health analytics company that produces the Financial Health Rating (FHR), a numerical score measuring the financial stability of public and private companies. The FHR Exchange is the platform RapidRatings operates to deliver these ratings and the membership program through which companies receive, manage, and act on their FHR.
This article explains who RapidRatings is, what the FHR measures, what the FHR Exchange is, and why a company might receive an invitation to join.
What is RapidRatings?
RapidRatings is a financial analytics firm that assesses the financial health of public and private companies worldwide. Large enterprises and financial institutions use RapidRatings' analysis to evaluate the financial risk of the suppliers, vendors, partners, and counterparties they depend on.
What is the Financial Health Rating (FHR)?
The Financial Health Rating (FHR) is a score on a 0-100 scale that reflects a company's near-term financial stability. The FHR is generated by analyzing a company's financial statements using RapidRatings' proprietary model. A higher FHR indicates stronger financial health and a lower likelihood of financial distress over the next twelve months.
Clients use the FHR to evaluate the financial resilience of the companies they purchase from, partner with, or otherwise rely on.
What is the FHR Exchange?
The FHR Exchange is the platform where companies submit their financial data, receive their FHR, and proactively manage their financial health and client requests.
The FHR Exchange operates as a membership program. Companies that join become members and receive their own FHR along with tools for monitoring their financial position over time. Membership is available at multiple tiers, with additional features such as ActionPath sharing unlocking at higher tiers.
Why did my company receive an invitation to join?
A company receives an invitation to the FHR Exchange when one of its clients requests a Financial Health Rating for that company. Clients include large enterprises and financial institutions that need to verify the financial stability of the companies in their supply chains and partner networks.
The invitation is the first step in producing an FHR for the requesting client. Joining the FHR Exchange satisfies the client's request and gives the joining company its own copy of the rating along with insights into the financial drivers behind the score.
What does FHR Exchange membership include?
All FHR Exchange members receive their Financial Health Rating. The report explains the rating, identifies the financial drivers behind it, and shows how the rating compares to industry benchmarks.
Upgraded membership tiers include additional features such as ActionPath sharing with clients and Pro-tier benefits. The Membership Tiers section of this Help Center describes what each tier includes.
Is the invitation legitimate?
A company that receives an invitation to the FHR Exchange can verify the request by checking with the client named in the invitation. The client's name appears in the invitation email and in the FHR Exchange portal.
RapidRatings' Member Services team is also available to help confirm the legitimacy of an invitation and to support companies through the rating process.