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Deutsche Bahn (DBHNGR; Aa1, AA-)

TRANSPORTATION
  • Reuters article from internal sources says DBHNGR will start "emergency cost cutting/brake" with "hiring freeze and an almost group wide spending freeze".
  • FY23 results 2 weeks ago were far from great with a EBIT loss of -€964m & guidance still seeing heavy capex at €21b (vs. revenue guidance of €47b). Capex guidance will include German government contributions but company did add intention "to significantly increase net capex from own funds".
  • Note DBHNGR benefits from a 5-notch uplift from its baseline rating (A3) based on government support (Moody's).
  • Company declined to comment, cash lines unch today.

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