Ceske drahy
Issuer Profile Corporate Bonds , 18. Okt.
The České dráhy Group (“ČD”) is the national railway company in the Czech Republic with roughly 22,000 employees and total assets of roughly CZK 120bn.
In the first half-year 2023, ČD was able to retain the positive growth momentum of revenue and net earnings. As the modernization of rolling stock with capital commitments of CZK 49bn is to continue, we expect free cash flow generation to remain limited.
EUR- and CZK-denominated bond issues represent the key source of external financing. 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. A green finance framework has been in place since May 2022.
Moody’s 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-).
In the first half-year 2023, ČD was able to retain the positive growth momentum of revenue and net earnings. As the modernization of rolling stock with capital commitments of CZK 49bn is to continue, we expect free cash flow generation to remain limited.
EUR- and CZK-denominated bond issues represent the key source of external financing. 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. A green finance framework has been in place since May 2022.
Moody’s 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-).