Brisbane’s Rapid Ratings gathers pace on Bloomberg
(9 December 2004 – Australia/US) Software based corporate credit and equity risk rating company, Rapid Ratings, has inked a deal with Income Securities Advisor (ISA), a Florida based publisher that provides Bloomberg with commentary on US debt markets and distressed companies.
Brisbane based Rapid Ratings currently produces risk reports on more than 1600 US stocks and views the US as its fastest growing market.
Rapid Ratings founder and managing director Dr Patrick Caragata said the venture would provide the company with a much wider audience, "given that there are 300,000 subscribers to Bloomberg globally".
ISA president Richard Lehmann said Rapid Ratings was breaking new ground and had an excellent track record in anticipating distress and turnarounds ahead of the market.
Rapid Ratings said its software had successfully picked up early warnings of distress for companies such as Enron by using its financial accounts for 1997, 1998, 1999 and 2000.
Dr Caragata said the company’s credit risk scores were a reliable indicator of a company’s financial fundamentals and could act as an early warning system of deterioration and turnaround.
"In contrast, the share price can often contain a good deal of market hype and it can lag a company’s fundamental financial performance," he said.
"By combining the two we can see whether a share price is trending in the same direction as a company’s fundamental position. It’s amazing to find how many stocks run hot or cold purely on market sentiment as opposed to their fundamental financial position," Dr Caragata said.
Rapid Ratings founder and managing director Dr Patrick Caragata said the venture would provide the company with a much wider audience, "given that there are 300,000 subscribers to Bloomberg globally".
ISA president Richard Lehmann said Rapid Ratings was breaking new ground and had an excellent track record in anticipating distress and turnarounds ahead of the market.
Rapid Ratings said its software had successfully picked up early warnings of distress for companies such as Enron by using its financial accounts for 1997, 1998, 1999 and 2000.
Dr Caragata said the company’s credit risk scores were a reliable indicator of a company’s financial fundamentals and could act as an early warning system of deterioration and turnaround.
"In contrast, the share price can often contain a good deal of market hype and it can lag a company’s fundamental financial performance," he said.
"By combining the two we can see whether a share price is trending in the same direction as a company’s fundamental position. It’s amazing to find how many stocks run hot or cold purely on market sentiment as opposed to their fundamental financial position," Dr Caragata said.
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