August 2, 2016
Global presence boosts UOW’s financial profile
Ratings agency upgrades credit profile and praises UOW’s moves into international markets
The University of Wollongong (UOW) has been praised for its strong financial position in the latest Ratings Research Update released by S&P Global Ratings recently.
The international ratings agency upgraded UOW’s stand-alone credit profile to ‘AA’ and ‘stable’, which it said reflected UOW’s robust enterprise and financial profiles in light of its growing presence on the global stage and high academic performance.
The revised outlook, released under S&P Global Rating’s new methodology, captures UOW’s “strong economic fundamentals, low industry risk, and its high level of financial resources” which mitigates the university’s moderate financial performance.
The report was an overwhelmingly positive sign for UOW, which was recognised for its reputable offshore presence in Dubai and Hong Kong.
Currently more than 4000 students attend UOWD, based in the largest city in the United Arab Emirates.
In 2015, UOW assumed control of Hong Kong’s Community College of University City University.
“We view UOW’s international exposure as indicative of a higher risk appetite compared with domestic peers, but it is currently well-managed,” S&P Global Ratings said in the report.
The agency praised UOW’s ability to maintain its strong financial profile in the face of declining government support.
“UOW’s very strong financial profile reflects its high level of financial resources. This is backed by the University’s strong financial policies,” the report said.
In addition, UOW’s impressive academic reputation, and high student attendance and retention rates were said to significantly contribute to its strong enterprise and financial standing.
UOW Chief Finance Officer Damien Israel was pleased with the improvement in UOW’s credit rating and said the report captured the strength and diversity of the university’s interests and financial position.
“UOW is in a strong financial position, but we need to maintain our focus on ensuring the long-term sustainability of the institution,” Mr Israel said.