International ratings agency Moody’s has confirmed the University of Tasmania’s sound financial position in its latest credit opinion, affirming its Aa2 credit rating and forecasting a stable outlook.
In its credit analysis update, Moody’s Investors Service highlighted the University’s strong institutional framework, high levels of oversight by the state and national governments, and its distinctive research capabilities.
Moody’s noted the University’s ratings were “bolstered by its strong standalone credit profile which is underpinned by strong financial resources and liquidity metrics, as well as a moderate total adjusted debt burden”.
University Chief Financial Officer Ben Rose welcomed the news and said it reflected the institution’s strong financial management through what had been a challenging period for the higher education sector.
“With careful financial management we emerged from the pandemic in a sound financial position, enabling us to continue to deliver and invest in the teaching and research our community relies on, and the infrastructure that supports it,” Mr Rose said.
“Moody’s also highlighted the constraints we face that many other universities don’t: Tasmania’s demographics, our small catchment, and the high-cost, multi-campus operating model that is part and parcel of serving our community.”
As we continue to deliver improved facilities and infrastructure for students and staff, Moody’s highlighted our solid record of delivering major projects but noted the current inflationary pressures and supply side constraints, which is driving costs up.
The opinion stated our “success in delivering projects in recent years largely reflects clearly established frameworks to manage the various complexities of project monitoring and delivery, whilst preserving underlying educational offerings to students”.
Core strengths in research, particularly in the health, marine and maritime areas, support strong research revenues for the University relative to our peers, Moody’s noted.
Media contact: Ben Wild – 0438 510 616
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University of Tasmania
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Mount Wellington sunrise image: Oi Studios