Private Company

Financial Statement Sourcing

Data Requirements for Financial Health Rating

List of Required Line Items and Other Important Information
The table and the bullet points below provide a short summary of the data requirements when submitting
information to Rapid Ratings. Rapid Ratings will not be able to provide any ratings guidance unless all of the
requirements are met.

Statement of Cash
Balance Sheet Profit & Loss Statement Flows
Total Current Assets Sales Revenue Cash from Operations
Cash or Cash Equivalents Operating Profit
Total Assets Interest Expense
Total Current Liabilities Net Profit
Debt Owed within 1 Year
Total Liabilities
Debt owed > 1 year
Total Equity

• The units (actual, 000’s, millions) and currency are indicated for each provided statement.
• The financial period start and end date is clearly marked on the Profit & Loss Statement and Statement of
Cash Flows.
• The balance sheet date exactly matches the fiscal period end date found on the Profit & Loss statements.
• At least 12 months of Profit & Loss Statement information has been provided for which the period end date is
within 1 year of the current date. If necessary, this can be done through adding multiple continuous periods.
• The balance sheet balances.
• If your firm is unable to provide a Statement of Cash Flows without incurring significant cost, please clearly
inform your Rapid Ratings contact, as we may be able to proceed.

Incomplete Submissions & Following Up for Clarifying Information

If you provide an incomplete submission, we discover conflicting data, or we require additional clarification, your
designated Rapid Ratings contact will contact you to complete your submission in a timely manner. The FHR is
derived entirely from the information provided by the supplier. As such, no ratings guidance will be provided
until sufficient up to date information has been received to generate a robust rating. If prompted for
additional information, please provide this information in a timely manner and alert Rapid Ratings should you
expect delays.

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 Private Company
Financial Statement Sourcing

Submitting Unaudited Statements

While we prefer that you provide complete and fully audited financial statements, this is not required. Depending
on the time of year, up-to-date audited statements are often still in the process of being prepared. In these
instances, our ratings methodology is sufficiently robust using unaudited financial information to provide a
meaningful and actionable assessment of Financial Health. If a template or general format is needed to provide
up to date information, Rapid Ratings can provide regional and language specific Excel input templates on
request.

Special Treatment of Line Items and Rating Exceptions

Providing Special Treatment to Specific Line Items
Occasionally companies may record abnormal, non-recurring transactions or structure their financial statements in
a non-standard format. An analyst from Rapid Ratings will review all line items on these financial statements and
allocate each to the appropriate model input. To ensure as accurate a rating as possible, please provide
clarification for any items for which Rapid Ratings should give special consideration. When appropriate, Rapid
Ratings will reclassify specific items within the model. Please note that you should make very specific reference to
the relevant fiscal period, amount and line item within the provided financial statements in order for our team to
review and action your request.

Inappropriate Entities for a Rating

The Financial Health Rating (FHR) is not a suitable assessment of risk for all company types. We cannot
generally provide ratings guidance for insurers, not-for-profit organizations and certain unconsolidated holding
companies. If you suspect that your company is among these, please discuss with your designated Rapid Ratings
contact.

Alternate Disclosure Options

Providing Financial Information in a Template
Suppliers may be unable to provide prepared statements to support this request. If this is the case, Rapid Ratings
has developed a number of regional and language specific templates for U.S., Chinese, Brazilian, German,
French, Italian and Spanish companies and will provide excel input templates on request. We can, additionally
provide a generic Excel template designed for our analysis if your company is outside of these countries.

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 Private Company
Financial Statement Sourcing

Submitting Parent Company Information

The client’s introductory letter you received, as well as Rapid Ratings’ subsequent communications name a
specific entity. This is the preferred entity and you should provide financial information at this level of the
company. In some instances Rapid Ratings can accept financial statements for the parent company. We can
treat a parent company as a suitable proxy, if and only if the provided entity meets the condition of 1.) Being the
direct parent AND 2.) Fully owns the subsidiary (requested entity). When providing financial statements for an
entity that does not precisely match the requested entity name, please provide a description of how the two
entities are related.

Providing a Substitute or Alternate Document for FHR Rating

The Financial Health Rating is based purely on the information found on the financial statements and Rapid
Ratings is unable to accept any other type of documentation as a substitute for a rating. Our methodology allows
for our mutual client to take a standardized approach when reviewing financial risk and by standardizing the
metric, our clients can view their risk exposure on an apples-to-apples basis.

Contact Details
Head Office Sales and Corporate Enquiries Customer Service and Technical Enquiries

86 Chambers Street, Suite 701 ☎ Phone: +1•646•233•4600 ☎ Phone: +1•646•233•4563

New York, NY 10007 ✉ E-mail: info@rapidratings.com ✉ E-mail: support@rapidratings.com

Disclaimer: A Financial Health Rating (FHR®) or equity recommendation from Rapid Ratings is not a recommendation or opinion that is intended to substitute for a
financial advisor's or investor's independent assessment of whether to buy, sell or hold any financial products. The FHR is a statement of opinion derived objectively
through our software from public information about the relevant entity. This information and the related FHR’s and related analysis provided in the reports by Rapid
Ratings do not represent an offer to trade in securities. The research information contained therein is an objective and independent reference source, which should be
used in conjunction with other information in forming the basis for an investment decision. Rapid Ratings believes that all of its reports are based on reliable data and
information, but Rapid Ratings has not verified this or obtained an independent verification to this effect. Rapid Ratings provides no guarantee with respect to the
accuracy or completeness of the data relied upon, nor the conclusions derived from the data. Each FHR is a relative, probabilistic assessment of the credit risk of the
relevant entity and its potential to meet financial obligations. It is not a statement that default will or will not occur given that circumstances change and management
can adopt new strategies. Reports have been prepared at the request of, and for the purpose of, the subscribers to our service only, and neither Rapid Ratings nor any
of our employees accept any responsibility on any ground whatsoever, including liability in negligence, to any other person. Finally, Rapid Ratings and its employees
accept no liability whatsoever for any direct, indirect or consequential loss of any kind arising from the use of its ratings and rating research in any way whatsoever,
unless Rapid Ratings is negligent in misinterpreting or manipulating the data, in which case, our maximum liability to our client is the amount of our fee for the report.

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