ČD Cargo’s restructuring has become one of the factors behind a stronger credit profile for the České dráhy Group, as Moody’s Ratings upgraded the Czech national railway carrier from Baa2 to Baa1 with a stable outlook.
The agency also improved České dráhy’s baseline credit assessment from ba2 to ba1, giving the group its best rating to date. For the company, the upgrade is significant as it prepares for a major investment phase in rolling stock and maintenance facilities.
Moody’s positively assessed the group’s improved liquidity, supported by stronger operating results. According to the rating agency’s key indicators, České dráhy achieved an EBIT margin of around 10% and a debt-to-EBITDA ratio below 6x.
The rating agency also highlighted management’s decisive steps to restructure ČD Cargo, which it described as strategically necessary given the structural decline affecting parts of the European rail freight market.
The upgrade follows the publication of České dráhy Group’s 2025 financial results. The group reported a consolidated pre-tax profit of CZK 1.8 billion under IFRS, improving its result by 46% year-on-year.
České dráhy also reported stronger operating performance, with total revenues rising by around 5% to CZK 54.3 billion.
For the passenger business, the improved rating comes at an important time. České dráhy plans to invest more than CZK 30 billion in new trains and maintenance facilities in the near term, as public transport authorities increasingly require modern rolling stock in new service contracts.
The group says its financing strategy remains conservative, combining access to capital markets with funding from the European Investment Bank, Eurofima and other credit lines. This should also support the repayment of older bonds worth €500 million this year.
