International ratings agency Moody’s has affirmed České dráhy’s Baa2 investment-grade rating while upgrading its outlook from stable to positive. The revised assessment reflects the company’s stable financial position, strong market presence in Czech rail, and strategic investment activity—despite ongoing capital expenditure.
The national rail operator has reported a consolidated pre-tax profit of CZK 1.3 billion (EUR 52 million) for 2024 under IFRS, marking its third consecutive profitable year. The parent company itself recorded CZK 2.1 billion (EUR 84 million) in profit, driven by continued growth in passenger numbers and a major modernisation of its rolling stock.
“The improved rating outlook from stable to positive recognises the efforts of all our employees and confirms that our drive for greater efficiency and investment in modern trains and services is delivering results,” said Michal Krapinec, Chairman of the Board and CEO of České dráhy. “Retaining our Baa2 investment-grade rating during a period of intense capital investment makes this even more significant.”
Krapinec added that the rating “shows our investment strategy is viewed as rational, sustainable and healthy,” enabling the company to “continue investing in new trains at the current pace.”
Moody’s cited České dráhy’s dominant position in both long-distance and regional passenger services, as well as its liquidity, operational cash flow, and revenue growth. The agency also acknowledged that planned capital expenditure—partly funded through external debt—was a necessary step towards maintaining competitiveness.
“It is important to highlight Moody’s view that investment in fleet and maintenance facilities is crucial for building competitiveness,” said Lukáš Svoboda, Member of the Board and Deputy CEO for Economics and Procurement. “For investors, it sends a clear message that České dráhy uses borrowed resources responsibly and remains a reliable place for investment.”
In 2024, České dráhy transported 168.8 million passengers—an increase of 4.4 million year-on-year—with a total of 8.3 billion passenger-kilometres travelled. This equates to an average of 15 train journeys per person annually, covering a distance comparable to that between Prague and Geneva.
Revenues in passenger transport rose to CZK 33.3 billion (EUR 1.3 billion), more than CZK 3 billion (EUR 120 million) higher than in 2023. The company invested CZK 18 billion (EUR 721 million) in new rolling stock, with 141 new vehicles entering service. Passenger services posted a profit of CZK 635 million (EUR 25 million). In total, České dráhy operated 179,000 long-distance trains and over 2.2 million regional services last year.
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