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Company List Segmentation and Corporate Hierarchy

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Written by Kailey Buxbaum
Updated over 2 weeks ago

Contact your Client Success Manager or [email protected] to determine whether a segmentation of your supplier, vendor, or counterparty list would benefit your program needs.

At the end of the segmentation process, you will be presented with the list, divided by:

  1. Publicly rated companies
    Added to your master portfolio if requested at the outset

  2. Public companies with a direct (one-level) public parent
    With the option to immediately add them to your master portfolio

  3. Potential private-rating candidates
    Used as a baseline for determining outreach priorities and assessing the feasibility of obtaining private company financials for future rating consideration

  4. Suppliers in other RapidRatings coverage universes:

    • FHR Exchange (Member) – Suppliers that exist in RapidRatings’ Financial Health Rating Exchange universe.

    • HealthMark – Suppliers that exist in RapidRatings’ active HealthMark coverage universe.

  5. Companies not rated by RapidRatings, including:

    • Nonprofit, government, or educational entities

    • Ineligible banks (non-OECD)

    • REITs, private equity firms, or investment funds

    • Newly formed entities with fewer than nine months of trading history

Corporate Hierarchy Considerations

To ensure public ratings accuracy, RapidRatings evaluates corporate hierarchy at the immediate parent level. This approach helps identify the most appropriate entity to rate, based on the internal significance of the relationship and the scope of engagement across different parts of an organization.

If a company’s public parent is more than one ownership level removed, the company is treated as a private entity. Relying on a parent company’s rating is not recommended when the parent is more than one degree removed from the operating entity being assessed.

Submitting Company Lists

For details on data requirements and best practices before submitting company lists, refer to the Company Matching article.

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