Hess Corp. has signed-up for Rapid Ratings International’s (RRI) suite of products for measuring corporate counterparty risk exposures. Under the agreement, Hess will use Rapid Ratings’ Financial Health Ratings (FHRs) to evaluate and manage the risks associated with its public and private suppliers.
RRI’s ratings provide comprehensive measurements of the financial health of a company, along with predictions concerning its ability to remain competitive within its sector. The ratings include ‘forward-looking’ indicators of changes in shares and bond prices, credit default swap spreads and changes in credit rating agencies’ evaluations.
Greg Cortez, director of credit risk control with Hess said, ‘RRI’s risk management tools for counterparty exposures rate public and private companies on the same basis. In today’s volatile credit environment, risk management is crucial to profitability. We believe Rapid Ratings will be a valuable addition to our current process.’
RRI Chairman and CEO James Gellert added, ‘Given the current climate of increased uncertainty and weakened confidence, relying on the large rating agencies and unreliable default tools that incorporate market pricing is too risky. Smart operators in the market demand better tools. The FHR methodology meets this need by telling businesses who they can trust.
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