Higher Education Ratings & Research
S&P: Rating On Tokyo University Of Science Affirmed At 'AA-'; Outlook Stable
In December 2005, Standard & Poor’s Ratings Services affirmed its 'AA-' long-term credit rating on Tokyo University of Science Educational Foundation (TUS), reflecting the university's well-developed educational programs and respected research capabilities as the largest university focused on science and engineering in Japan. The outlook on the rating is stable.
TUS exhibited a strong ability to attract applicants to its school through the entrance exam turnout for April 2005 university admissions amid a sharp decline in the number of applicants for science and engineering departments at private universities throughout Japan. The university also has a solid track record in securing high-quality students.
TUS has been restructuring its research and educational facilities, including large-scale renovation of its Kagurazaka campus, which is expected to contribute to further improvements in competitiveness. The university maintains a balance sheet free of debt, supported by ample liquidity and large reserves.
Although 72% of the university's revenue comes from tuition fees, deterioration in its financial profile is unlikely, given the prospects for stable student numbers. TUS is expected to maintain a high level of competitiveness among science and technology universities. Although it has a large projected capital investment requirement for the enhancement of its educational facilities, the university should be able to maintain its strong financial profile, backed by ample liquidity and stable cash flow.
The rating on TUS could be raised if the university's business profile further stabilizes through improving its enrollment rate of successful applicants or attracting a wider range of students, as well as diversifying and reinforcing its financial profile through donations or external funds.
The rating on TUS could be lowered if its ability to secure students or the students’ overall scholastic quality deteriorates from intensified competition with other schools, or its financial burden increases from extremely aggressive investment plans, but this is unlikely to take place over the short-to-medium term.
A Japanese-language version of this media release is available on Standard & Poor's Research Online at
www.researchonline.jp, or via CreditWire Japan on Bloomberg Professional at SPCJ <GO>. Complete ratings information is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. All ratings referenced herein can be found on Standard & Poor's public Web site at www.standardandpoors.com; under Credit Ratings in the left navigation bar, select Find Ratings, then Credit Ratings Search.
Makiko Yoshimura, Tokyo