De Montfort University Leicester (DMU) is in a strong market position, according to a European credit rating company, despite the higher education sector’s uncertainties over Brexit and a fall in the numbers of 18 year olds living in the UK.
Moody’s Public Sector Europe has announced that DMU has been rated as ‘stable’ for reaching targets for student growth at home and overseas, and effectively managing its costs to support ‘solid operating cash flow’.
DMU is one of a number of UK universities to receive the rating, which also recognises the likelihood of stable future growth.
Credit ratings are an important indicator of how an institution is performing financially and essentially seen as a health report for existing and potential global investors.
Moody’s said in a statement that the rating “reflects Moody’s view that [these] universities will continue to meet targets for student enrolments despite adverse domestic demographics and Brexit uncertainty.
“These [universities] have met enrolment targets for domestic undergraduate enrolments over the last two years despite the demographic pressures of fewer 18 year olds, whose population will continue to decline until the trend reverses in 2021. Most (including DMU) have also met targets for international student enrolments.
“The stable outlook also reflects Moody’s view that [DMU and others] will continue to effectively manage budgets to maintain strong operating cash flow, despite the pressures of frozen tuition fees and rising costs.”
The stable rating has been welcomed by DMU’s Interim Vice-Chancellor, Professor Andy Collop.
He said: “Thanks to five years of solid investment DMU has become the vision of a 21st century university, providing superb facilities for teaching, learning and research.
“The £136 million we have invested in our campus has made it one of the best in the country, attracting students from around the globe to our campus and the city of Leicester so it is pleasing this is being recognised by Moody’s.
“We must, however, remain alert to the changing environment we operate in and ensure we continue to offer the best possible value for money to our students.”
Investment at DMU has included:
- The construction of the multiple award-winning Vijay Patel Building
- Extra teaching and study spaces offering industry-level equipment
- The £5m The Venue@DMU for hosting celebratory events, including graduations, matriculation ceremonies and public concerts
- The £4.2m refurbishment of Leicester Castle which is now home to the Leicester Castle Business School
- New green spaces as well as a pedestrianised and landscaped Mill Lane running through the heart of the campus, connecting the city centre to the West End
Posted on Thursday 23rd May 2019