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Moody's affirms ACU's Aa2 stable rating

Key points:

• Moody’s affirms ACU’s Aa2 stable rating
• This reflects ACU’s resilience in enrolments, disciplined cost management, and track record as one of the largest providers of teachers and nurses in Australia

Ratings agency Moody’s has affirmed Australian Catholic University’s (ACU’s) Aa2 rating with a stable outlook, reflecting the sustainable operating model, strong governance and oversight, and solid operating metrics. 

Moody’s highlighted ACU’s resilience in domestic and international enrolments, disciplined cost management, and its track record and national significance as one of the largest providers of teachers and nurses in Australia.

The rating report card noted that ACU’s focus on high-demand fields such as health and education were well-supported by extensive partnerships with Catholic schools and healthcare institutions that provide placements and graduate employment pathways. 

ACU Deputy Vice-Chancellor Corporate Patrick Woods said ACU’s strong financial performance was underpinned by strong student demand for an ACU education, with operational efficiencies enabling strategic investment in student services, research endeavours, staffing, and IT systems. 

“Maintaining our stable rating underscores the strength of our long-term strategy and financial stewardship,” Mr Woods said. 

“Over the past few years, we’ve balanced our investment in vital infrastructure, student services and high-impact research with strong fiscal discipline.

“This rating result reflects that measured approach, and gives us the confidence to continue investing strategically, while maintaining our financial resilience.” 

The report from Moody’s pointed to ACU’s strong governance framework, noting that the university maintained a high level of transparency within a robust institutional framework.

ACU Chief Financial Officer Petrus Swemmer said ACU’s strong position was due to a focus on financial sustainability with a commitment to strong oversight. 

“This rating reflects the confidence in our Vision 2033 strategy and opportunity for the university ahead,” Mr Swemmer said. 

“It also recognises the dedication of our staff and the strength of our operations and financial management.”