The rating report comes shortly before new bonds are issued.
Czech Railways maintained its Baa2 rating. This is key news for the carrier in view of the upcoming issue of new ESG bonds. CD received the rating from Moody’s, an international rating agency. In the report published today, analysts mention CD’s “solid market position” and “high revenue visibility” thanks to long-term contracts with public transport clients and the company’s measures to reduce the impact of the coronavirus pandemic. The report is available on CD’s website.
Czech Railways is now preparing to issue its first ESG bonds and is financing the largest fleet modernization in the past 30 years. The bond issue is expected to amount to EUR 550 million.
The affirmation comes at a time when Czech Railways faces compensation for damages to private carriers and millions of euros in fines from the European Commission for its past actions. The risk of fines has been quantified by the Czech Railways at CZK 1.7 billion.
Edited and translated by Lucie Trávníčková.