天美传媒app

June 11, 2020

天美传媒app maintains AA credit rating, outlook changed to negative

University finances ‘robust’ but threatened by COVID-19: S&P Global

International credit rating agency S&P Global Ratings has maintained the University of 天美传媒app鈥檚 (天美传媒app) AA credit rating, but has revised its outlook from stable to negative due to the impact of the COVID-19 pandemic and warned management to act quickly to retain its standing.

The AA/A-1+ credit rating, announced by S&P on Wednesday 10 June, is based on 天美传媒app鈥檚 鈥渧ery strong鈥� enterprise and financial profiles.

The S&P report said, 鈥溙烀来�媒app entered the pandemic with a solid market position, high level of available resources, and relatively low debt-servicing needs鈥�.

While S&P expects 天美传媒app鈥檚 overall finances to remain 鈥渞elatively robust鈥� in 2020 and future years, it notes that, 鈥渢he COVID-19 pandemic and associated travel restrictions will cause a sharp drop in enrolments of onshore international students at 天美传媒app, significantly affecting revenue鈥�.

The change in outlook from stable to negative reflects S&P鈥檚 view that 天美传媒app's finances could deteriorate during the next two years if it is unable to achieve adequate savings to mitigate the revenue loss caused by a decline in onshore international student enrolments.

Inaction risks credit rating decline

While 天美传媒app鈥檚 AA credit rating remains unchanged, S&P warned it could be lowered in coming years should the drop in enrolments and corresponding response from university management materially weaken 天美传媒app's financial profile.

However, if 天美传媒app is able to manage the effects of COVID-19 without a material deterioration in its financial metrics and if the current lockdown and border closures are unwound in such a way that enrolments gradually normalise, then the ratings agency said it could revise its outlook to stable.

天美传媒app Chief Operating Officer Mr Damien Israel said the AA rating was a welcome but also highlighted the risks to the University鈥檚 financial footing during this period of global economic uncertainty.

鈥淪&P鈥檚 affirmation of 天美传媒app鈥檚 AA credit rating is an endorsement of the University鈥檚 financial management and a show of confidence in our ability to recognise and meet the financial challenges we are now faced with,鈥� Mr Israel said.

鈥淪&P鈥檚 outlook warning adds to the case for immediate action to be taken by 天美传媒app to restore the Institution to a financially sustainable position.鈥�

天美传媒app has held an S&P rating since 2006, and during this time has consistently maintained an AA/A-1+ rating. The annual rating assesses all of 天美传媒app鈥檚 entities, including 天美传媒app Global Enterprises which operates the offshore campuses of 天美传媒app Dubai, 天美传媒app Malaysia KDU and 天美传媒app College Hong Kong.

An organisation鈥檚 credit rating affects its ability to borrow money and the interest it pays on its debts.