Ahmad Faraz Arif
PACRA Assigns Entity Ratings to Ziauddin University
Ziauddin University (‘the University’) was established in 1995 as a medical university. Over time the University has evolved and, currently, has substantial presence in the academic disciplines of Health Sciences, Law, Politics & Governance, Pharmacy, Engineering, Science, Technology & Management, Eastern Medicine & Natural Sciences, Liberal Arts & Human Sciences, Nursing & Midwifery and Veterinary & Animal Sciences. The University has also diversified by introducing sizable program offerings, enrollment, and faculty. Expansionary measures coupled with literacy driven populace has helped the University grow over the years resulting in various locations across Karachi and recent expansion into Sukkur. Lately, the education sector has shown noticeable competition, however, Ziauddin University has maintained an adequate position. The University enjoys an adequate risk profile and continues to increase its revenues driven by capacity enhancement. The introduction of new programs and campus to accommodate additional students is expected to soar up the revenue stream and hence support further expansion in the future. The University has maintained healthy margins and primarily funds expansionary plans through equity. The management remains confident in the ability of the University to generate surplus for future expansion plans. The ratings draw strength from the University’s adequate financial profile represented by moderately leveraged capital structure, stable coverages, and adequately managed working capital cycle. The University also owns substantial land. On the qualitative front, an association of the Board of Governors with the University ensures a stable governance framework. Moreover, the University has an array of national accreditations and international linkages supplementing its ranking.
The ratings are dependent upon the management’s ability to sustain margins while remaining self-sufficient and in surplus for expansionary measures. Sound financial discipline remains critical. Prudent management of the working capital, maintaining sufficient cash flows, and coverages remain crucial for the ratings. Management of reputational risk is also important for ratings. Successful and timely materialization of expansionary plans remains imperative for the ratings.
Ziauddin University (‘the University’) was established through ACT VI of 1995 (Ziauddin Medical University ACT) by the Provincial Assembly of the Government of Sindh. The University is a non-profit private institution which provides higher education services. It is accredited and recognized by the Higher Education Commission of Pakistan. The University has its branch campuses in Karachi and Sukkur. The Board of Governors includes representatives from Dr. Ziauddin Hospitals Trust, Government and Regulatory Bodies. Mr. Asim Hussain serves as Chairman of the Board of Governors and Chancellor of the University.