The ratings agency changes its outlook for the university from stable to negative

“The negative outlook reflects increasing risks related to the university’s elevated debt burden and lower levels of liquidity compared to similarly-rated universities, at a time when the university faces a substantial shortfall in student enrolments that would prompt challenging adjustment measures,” Moodys says.

The agency adds that management responses mean “the university will incur material restructuring costs before the measures translate into permanent savings.”

However, Macquarie U’s Aa2 rating is unchanged. “The university’s strong brand will support student demand over the medium to long term, notwithstanding the pandemic-related shock.”