榴莲视频app

June 11, 2020

UOW maintains AA credit rating, outlook changed to negative

榴莲视频app finances ‘robust’ but threatened by COVID-19: S&P Global

International credit rating agency S&P Global Ratings has maintained the 榴莲视频app of 榴莲视频app鈥檚 (UOW) AA credit rating, but has revised its outlook from stable to negative due to the impact of the COVID-19 pandemic and warned management to act quickly to retain its standing.

The AA/A-1+ credit rating, announced by S&P on Wednesday 10 June, is based on UOW鈥檚 鈥渧ery strong鈥� enterprise and financial profiles.

The S&P report said, 鈥淯OW entered the pandemic with a solid market position, high level of available resources, and relatively low debt-servicing needs鈥�.

While S&P expects UOW鈥檚 overall finances to remain 鈥渞elatively robust鈥� in 2020 and future years, it notes that, 鈥渢he COVID-19 pandemic and associated travel restrictions will cause a sharp drop in enrolments of onshore international students at UOW, significantly affecting revenue鈥�.

The change in outlook from stable to negative reflects S&P鈥檚 view that UOW's finances could deteriorate during the next two years if it is unable to achieve adequate savings to mitigate the revenue loss caused by a decline in onshore international student enrolments.

Inaction risks credit rating decline

While UOW鈥檚 AA credit rating remains unchanged, S&P warned it could be lowered in coming years should the drop in enrolments and corresponding response from university management materially weaken UOW's financial profile.

However, if UOW is able to manage the effects of COVID-19 without a material deterioration in its financial metrics and if the current lockdown and border closures are unwound in such a way that enrolments gradually normalise, then the ratings agency said it could revise its outlook to stable.

UOW Chief Operating Officer Mr Damien Israel said the AA rating was a welcome but also highlighted the risks to the 榴莲视频app鈥檚 financial footing during this period of global economic uncertainty.

鈥淪&P鈥檚 affirmation of UOW鈥檚 AA credit rating is an endorsement of the 榴莲视频app鈥檚 financial management and a show of confidence in our ability to recognise and meet the financial challenges we are now faced with,鈥� Mr Israel said.

鈥淪&P鈥檚 outlook warning adds to the case for immediate action to be taken by UOW to restore the Institution to a financially sustainable position.鈥�

UOW has held an S&P rating since 2006, and during this time has consistently maintained an AA/A-1+ rating. The annual rating assesses all of UOW鈥檚 entities, including UOW Global Enterprises which operates the offshore campuses of UOW Dubai, UOW Malaysia KDU and UOW College Hong Kong.

An organisation鈥檚 credit rating affects its ability to borrow money and the interest it pays on its debts.