Rich back in ratings business
RapidRatings has joined forces with Brillient managing director Graham Rich to provide company and credit risk rating information to the Australian funds management and financial advisory industries.
Rapid Ratings managing director Patrick Caragata says this information acts as a scientific tool as well as “a very good second opinion” for investment professionals operating in the turbulent and uncertain international markets.
Currently in a growth phase of the business, Caragata is keen to expand Rapid Ratings service within the Australian market, following the successful launch of the company in New Zealand a year ago and the four years of testing and development in the market.
“The timing is right for our global rating service, given current developments in equity markets and the financial sector,” he says.
“Our alliance with Brillient and Graham Rich is an indication of the seriousness with which we are pursuing new market development in Australia. Graham Rich’s managed funds competence and his funds management and financial advisory networks will facilitate our quick movement into this market.”
Rapid Ratings has the capacity to rate up to 40,000 international companies per day, with a web service which can produce reports just 30 seconds after profit and loss balance sheet information is entered. The system uses scientific tools which uses a 62 financial variables, up from the usual 8-10 used by many groups.
It is based on this sort of capability that Rapid Rating predicted Enron as a junk bond back in 1997 and HIH in 1996.
Rich is also working in collaboration with Paul Resnik of Resnik Communications on an annual Portfolio Construction Forum.
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