"The rating, cut from 'B-', reflects what Fitch described as "deteriorating liquidity" following materially weaker and negative free cash flow in the first nine months of 2026. The agency now forecasts a £400 million free cash flow shortfall in 2025, considerably worse than previously expected, and predicts that cash flow will remain negative until at least 2028, even after planned reductions in capital and operating expenditure."
"Fitch also warned that US policy uncertainty poses a significant challenge for the company. Despite Aston Martin enjoying a relative advantage over European rivals under the US-UK trade agreement, tariffs introduced earlier this year have dented consumer confidence in the brand's most important market. The carmaker introduced an additional 3% price increase-its second hike of the year-in an attempt to offset the tariff impact."
Fitch Ratings downgraded Aston Martin's credit score to 'CCC+' from 'B-' because of deteriorating liquidity and materially weaker, negative free cash flow in the first nine months of 2026. The agency forecasts a £400 million free cash flow shortfall in 2025 and expects cash flow to remain negative until at least 2028 despite planned reductions in capital and operating expenditure. US policy uncertainty and tariffs have weakened consumer confidence in the Americas, prompting two price increases this year. Early pre-buying lifted Q1 sales but volumes slipped in Q2 and declined further in Q3, leading to a £300 million cut to investment plans.
Read at Business Matters
Unable to calculate read time
Collection
[
|
...
]