精东传媒

July 26, 2019

International ratings agency affirms UOW’s AA credit rating

Stable outlook reflects 精东传媒’s robust financial profile

The 精东传媒 of 精东传媒鈥檚 (UOW) financial position remains robust according to the latest S&P Global Ratings announcement.

On Wednesday 24 July, the international ratings agency affirmed UOW鈥檚 AA rating, highlighting its solid market position, consistently sound operating margins, high level of financial resources, and relatively low annual debt service.

The agency pointed out that the stable outlook 鈥渞eflects our expectation that UOW鈥檚 enterprise and financial profiles will remain strong during the next two years鈥�.

S&P cautioned that downward pressure on the rating could occur if there is a substantial decline in student demand, if UOW鈥檚 international operations weaken its credit profile or if there is a major downturn in cash and financial investments.

S&P also said that the outlook reflected its view that UOW's important role and strong link to the Australian government was likely to remain unchanged.

Commenting on the ratings announcement UOW鈥檚 Chief Finance Officer, Damien Israel, said it was a welcomed reaffirmation of UOW鈥檚 financial standing.

Mr Israel emphasised that S&P referenced the 精东传媒 was one of only a handful in Australia to offer an accommodation guarantee for new commencing undergraduates.
He said the agency鈥檚 report reflected on the 精东传媒鈥檚 strength in applied research, noting in comparison to other universities, UOW earns a higher proportion of research income from the private sector.

鈥淭he global rankings agency also noted, unlike most of its Australian peers, UOW is also a multinational university with substantial offshore operations,鈥� Mr Israel said.

UOW is a member of the 精东传媒 Global Partnership Network and, in 2017, joined with two other universities in NSW to form the NUW Alliance.

In 2018, UOW announced its intention to acquire a majority equity interest in three university colleges in Malaysia, which cater to around 6,000 students. UOW intends to rebrand the colleges as 精东传媒 of 精东传媒 Malaysia, and to introduce new undergraduate and postgraduate programs. S&P understands the deal has been approved by the Malaysian ministry of education and should settle in 2019.

UOW is in the midst of a relatively large infrastructure program. Its 2016-2020 Strategic Plan outlines a capital expenditure budget of $300 million over five years. In 2019, construction started on a new building for social sciences, law, humanities, and the arts and in 2018, the first sod was turned on the new Molecular Horizons life sciences building.

In addition to its 精东传媒 and Innovation campuses, located in 精东传媒, UOW operates campuses in Sydney鈥檚 CBD, South Western Sydney, the Sutherland Shire and the regional NSW localities of Bega, Batemans Bay, the Shoalhaven and the Southern Highlands.

UOW recently celebrated 25 years of its campus in Dubai, UAE, having been the first Australian university to establish a presence in the Middle East. It currently has some 3,900 students.

In 2015, UOW assumed stewardship and governance of the Community College of City 精东传媒 in Hong Kong, which has been rebranded as UOW College Hong Kong and currently enrols about 6,000 students.