Research Detail

2024/06/04 / Erste Group Research

České dráhy
The České dráhy Group (“ČD”) is the national railway company in the Czech Republic. With close to 22,000 employees and total assets of roughly CZK 127bn, the group offers passenger and freight railway transport, as well as associated services.

With a stronger passenger and freight business, group revenues increased by 11% to CZK 49bn and EBITDA by 45% to CZK 16bn in 2023, generating a net profit of CZK 3.2bn after three years of losses.

EUR- and CZK-denominated bond issues represent the key source of external financing, accounting for roughly 50% of the financial debt of the group. Although debt issues do not offer a formal, explicit state guarantee, several characteristics typical for agencies are in place.

ČD is raising ESG transparency, having disclosed its first sustainability report in 2023. A green finance framework has been in place since May 2022.
Moody’s most recently affirmed its rating 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

Author	Erste Group Research
Date	2024/06/04
Language
Product name	Credit News
Topic in focus	Credits/ Corporate bonds
Economy in focus	Austria, Czech Republic
Currency in focus	Czech Koruna, Euro
Sector in focus	-
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