The University of Newcastle has achieved a strong credit rating of Aa2 from international rating agency Moody’s Investors Service.
University of Newcastle Vice-Chancellor, Professor Nicholas Saunders, said the Moody's rating, in the high grade category, was an independent assessment that acknowledged the University’s strong financial position.
“The University has directed significant effort in recent years to consolidating its financial foundations and the Moody’s rating demonstrates our efforts are paying off.”
Moody’s found the University had a sound operating performance characterised by recent positive financial outcomes and healthy cash reserves.
“The University’s foundation is strong. Supporting our solid financial position is strong performance across all areas of the University. Our focus now is to ensure we continue on our path of sustainable growth.”
In 2010, the University’s student enrolments reached a record 35,500, it commenced a $20 million program of works at the Ourimbah campus and advanced plans to establish a Newcastle city campus. Work also began on the $100 million investment in new and existing student accommodation.
In research, the University recently established the Newcastle Institute for Energy and Resources (NIER), with support of $30 million from the Australian Government. In the latest rounds, National Health and Medical Research Council funding was granted for a record number of projects and the University received its highest funding allocation from the Australian Research Council.
“We are in a prime position to make the most of the opportunities that lie ahead,” Professor Saunders said.
Moody’s ratings are intended as relative measures of creditworthiness to allow the market to assess risk. The Aa2 rating places the University of Newcastle higher than many listed companies in Australia, including Boral Ltd, Coca Cola Amatil Ltd and Foster’s Group Ltd.
For interviews with the University of Newcastle’s Chief Financial Officer Craig Wallis contact Carmen Swadling, Media and Public Relations Officer, on 02 4985 4276 or 0428 038 477.