Understanding the FHR: A Complementary Perspective
The purpose of our Financial Health Rating (FHR®) is to provide a systematic, transparent, and data-driven view of changes in financial risk. It is designed to complement—not replace—traditional agency ratings. Rather than being directly comparable, the FHR offers a unique perspective that enhances your overall risk management strategy.
Why Use Multiple Perspectives?
Building an effective risk management program requires incorporating uncorrelated tools that offer different insights. Our FHR adds significant value because it is fundamentally different from traditional agency ratings in several key ways:
Objective, Model-Driven Approach: We rely entirely on data and analytics, not subjective judgment.
Dynamic Ratings: We update ratings continuously as underlying fundamentals change, rather than prioritizing stability.
Global Consistency: The same methodology applies to both public and private companies worldwide.
True Comparability: FHRs are always “apples to apples,” regardless of geography or company type.
While we discourage absolute comparisons, we recognize that clients often want a frame of reference. For this reason, we provide an approximate mapping between FHR and Moody’s corporate rating scale, including Estimated Probability of Default (EPD):
Rating Equivalents Table Disclaimer
This table shows the approximate equivalents between the corporate rating scales of RapidRatings and Moody’s. While we are confident that the aligned rating levels provide a reasonable degree of accuracy, the approach is not scientific. Other similar or proximate alignments could also be considered acceptable.
Important Notes:
The credit rating equivalents table is not intended to imply any correlation between the rating systems and methodologies of RapidRatings and Moody’s Investors Service.
It does not suggest that any other rating agencies would rate a company at the same level as RapidRatings.
Moody’s is a trademark of its respective company.