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2022/06/21 / Erste Group Research

České dráhy

The České dráhy Group (“ČD”, Czech Railways) is the national railway company in the Czech Republic. With roughly 22,000 employees and total assets of roughly CZK 104bn, the group offers passenger and freight railway transport, as well as associated services.

Following a 12% decline in 2020, in 2021, group revenues recovered by 7% to CZK 39bn, EBITDA by 63% to CZK 8bn and the net loss was downsized to CZK -1.6bn, after CZK -4.1bn. The sizeable modernization program, including renewal and upgrading of rolling stock, drove CAPEX in 2021 to CZK 10.7bn.

Balance sheet and credit ratios show a better picture, with net debt/EBITDA improving to 5.4x, EBITDA/interest expense to 6.8x, but gearing rising to 117%. The outlook for further growth in 2022 is clouded by rising energy prices and the current geopolitical uncertainties.

EUR- and CZK-denominated bond issues represent the key source of external financing, accounting for approx. 71% of the financial debt of the group. The debt issues do not offer a formal, explicit state guarantee. However, several characteristics typical for agencies are in place.
A considerable share of non-renewable energy used represents a key ESG risk, in our view. Moody’s rates České dráhy at Baa2/stable, based on its methodology for government related issuers and its critical role for the Czech Republic (Aa3/AA-/AA-).

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General information

AuthorErste Group Research
Product nameCredit News
Topic in focusCredits/ Corporate bonds
Economy in focusCzech Republic
Currency in focusCzech Koruna
Sector in focus-


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