Little Ferry, NJ (PRWEB) September 10, 2005
Global ratings agency Rapid Ratings, which rates over 15,000 companies in 6 countries, has significantly increased the international distribution of its corporate credit risk rating and equity research reports following the launch of a new service available on Reuters.
The global investment community can access Rapid Ratings credit and equity research reporting products on three separate portals. Institutional users and other financial services professional subscribers (such as hedge funds, venture capital firms, investment banks, private equity firms, institutional investors, broker/dealers etc) can access reports through Reuters Research On Demand and through Reuters Knowledge portals.
The general investing community can access Rapid Ratings on Reuters.com in the Analyst Research section.
Rapid Ratings, is a new generation corporate credit rating agency that uses proprietary software to rate the financial health of public and private companies. Throughout its history, Rapid Ratings has developed a strong track record of anticipating corporate distress and collapse of companies such as Enron and Parmalat years before other analysts or agencies recognized their distressed condition. Rapid Ratings also downgraded both GM and Ford to sub-investment grade in 2000, five years before the traditional rating agencies.
On a restricted basis, Rapid Ratings makes available its equity reports in the Âglobal settlementÂ through BNY Jaywalk, The Bank of New York's independent equity research consultancy. This enables financial institutions to tap equity research from multiple independent research providers. Rapid Ratings is also member of the Investorside Research Association in Washington D.C.
Under the agreement with the UK based global information company, Reuters' subscribers and clients will be able to purchase Rapid Ratings' Comprehensive Credit Rating Reports (credit rating report) and Composite Risk Reports (equity risk report) on more than 1,600 of the largest US companies. These reports will be updated every two months, or more frequently as demand arises. Coverage will also be extended to listed companies in the UK, Canada, Australia, New Zealand and Singapore as demand arises.
Each credit rating report provides 37 pages of detailed analysis of the company's financial health and one, three and five year ratings outlook. The Report benchmarks each company's financial performance and position with respect to 62 financial ratios measured against industry peers over a 3 to 10 year time period. The Rapid Rating proprietary model covers 24 industry segments and the key performance metrics and weightings that drive global industry best practice for that sector.
Composite Reports are equity risk reports that compare the trends in a company's financial health relative to the share price trends. These reports are used by long and short oriented fund managers to determine weather equity is being overvalued or undervalued by the market. Independent tests, using data from 1500 US companies over 5 to 8 years, indicate that Rapid Ratings can anticipate longer-term downturns and upturns about 80% of the time. The Composite Report also provides trigger prices for buy, sell or hold decisions.
Dr Patrick Caragata, the founder and CEO of Rapid Ratings commented: ÂIn the aftermath of the sudden and costly collapse of Enron, WorldCom, and Parmalat there has been significant growth in demand for independent and objective research that provides an early warning to both debt and equity investors. Rapid Ratings is responding to that growing demand for a more realistic benchmark in the global ratings industry with a suite of new products and services. Investors and analysts using the Reuters service can now access objective, quantitative credit risk and equity research on the largest companies in the US. We are very pleased to be associated with Reuters, and would like to thank their technical staff for a wonderful job in getting us launched.Â
Rapid Ratings' System
Rapid Ratings is a new generation corporate rating agency offering solutions for global debt and equity markets. At the heart of Rapid Ratings' software-driven research are 24 industry-specific quantitative multivariate econometric panel data models that generate credit risk ratings for approximately 15,000 global companies. Rapid Ratings uses audited publicly available corporate financial data as inputs to generate a credit risk and equity risk rating. Each industry model employs 62 financial ratios and a sophisticated global benchmarking system. The models include a database of over 300,000 companies that reference about 30 years of corporate financial data from more than a dozen countries.
Rapid Ratings' Background
Rapid Ratings is 78% owned by Collection House Limited, an Australian company that is listed on the ASX. Rapid Ratings has offices in New York, London, Toronto, Singapore, Sydney, Brisbane and Wellington, New Zealand and provides reports on both listed and unlisted companies for investment funds, brokers, private banks, banks, insurance companies, international accounting firms, large creditors, financial planner networks, financial advisors, and retail investors.
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