July 1, 2022
S&P Global Ratings upgrades its outlook on 天美传媒app finances
Agency says cost savings of the past two years will allow University to manage aftershocks of pandemic-related revenue losses
S&P Global Ratings has upgraded its outlook on the University of 天美传媒app (天美传媒app) to a stable outlook from a negative outlook, while also affirming the University鈥檚 AA/A-1+ issuer credit ratings.
The University had maintained an AA/A-1 stable outlook credit rating since 2006; however as a result of the COVID-19 pandemic and the reduction in international student income, the rating was placed on negative watch in June 2020.
The upgraded outlook in the international ratings agency鈥檚 30 June 2022 report vindicates 天美传媒app鈥檚 approach to addressing the challenges of the COVID-19 pandemic.
The University鈥檚 aim throughout the pandemic has been to preserve its long-term financial sustainability, reduce costs while minimising job losses, and safeguard the world-class quality of its teaching and research.
The upgraded outlook from S&P shows that 天美传媒app is on a firm path to financial sustainability, while the recent QS World University Rankings 2023, which saw 天美传媒app rise eight places to rank 185th globally (placing it in the top 1 per cent of universities worldwide) and the QILT Employer Satisfaction Survey, which rated 天美传媒app graduates as the best employees in Australia, show this hasn鈥檛 come at the expense of the University鈥檚 teaching and research quality.
鈥淲e achieved these accomplishments thanks to an extraordinary effort by 天美传媒app staff who transitioned to online teaching over a concise time frame, and who agreed to temporarily vary their employment conditions to minimise job losses as the institution confronted the financial impact of COVID-19,鈥� 天美传媒app Vice-Chancellor Professor Patricia M. Davidson said.
鈥淪ignificant challenges remain but I am confident in the University鈥檚 ability to pull together and overcome them while continuing to serve the communities in which we operate and maintaining our well-earned reputation as a world-class teaching and research institution.鈥�
In its recent annual report, 天美传媒app reported a modest surplus of $8.3 million for 2021.
S&P鈥檚 outlook revision reflects its view that pandemic-related risks to 天美传媒app鈥檚 finances and operations are diminishing. 天美传媒app entered the pandemic with a solid market position, a high level of available resources, and relatively low debt-servicing needs.
S&P noted the improved stable outlook reflects its view that cost savings achieved over the past two years will allow 天美传媒app to manage the aftershocks of pandemic-related revenue losses, while its debt will stabilise and then decline over the medium term.
In its overview, S&P said: 鈥淲e expect 天美传媒app to run a roughly balanced operating budget, on average, during the next few years, after small adjusted operating deficits over the last two years. Revenues should gradually recover as onshore, and offshore international students return to campus.
鈥溙烀来絘pp's debt burden and debt servicing needs are high compared to peers, but we anticipate debt will remain stable before declining from 2024 onward as the first of its bullet maturities is repaid.
鈥淥ur ratings on 天美传媒app benefit from uplift due to its important public policy role and strong links to the Australian government.
鈥淲e are revising our outlook on 天美传媒app to stable from negative and affirming our AA/A-1+ issuer credit ratings.鈥�