Ratings agency Moody’s reports a periodic review of four universities long-term debt rating. They all rated second-tier investment grade

Australian Catholic U: is rated Aa2, “which reflects its robust financial profile and strong market niche in the provision of graduates in nursing, paramedics and teachers” plus “supportive institutional framework with sizeable grants” from the Commonwealth.

Macquarie U: is also Aa2. Moody’s points to “flexible operating and capital expenditure structures that support its healthy operating margins” and government support, “in the unlikely event that the university faces acute liquidity stress.”

While, “robust operating profile and various countermeasures” will “mitigate against current conditions” the agency does note, Macquarie U’s, “credit profile is constrained by an elevated debt burden and lower levels of liquidity compared to similarly-rated universities, at a time when it faces a substantial shortfall in international student enrolments.”

Uni Sydney: Aa1’s rating, “reflects (its) flagship status in Australia and its prominent research and academic reputation.” The university has a “solid liquidity position, which provides ample support to its operations and obligations.”

“Strong financial performance — bolstered by secure Commonwealth grants, international student fees and conservative fiscal practices — allows the university to continue funding a large portion of its capital improvement program through surplus internal cash flows.”

UTS: is also rated Aa1. The agency points to “healthy operating margins and cash flows,” plus “a high likelihood” of Commonwealth support, “should UTS face acute liquidity stress”.

However, Moody’s points to the impact of the pandemic on international student numbers. “Its credit profile is constrained by lower levels of liquidity compared to domestic peers; exacerbating downside risks during periods of heightened volatility.”

But the good news is; “we expect UTS’s robust operating profile and various countermeasures being implemented over the next few years will partially mitigate current conditions.”