Credit rating agency Fitch Ratings has downgraded British carmaker Aston Martin’s debt ratings, citing the luxury sports car maker’s persistent negative cash flow and uncertainty around its US customer base.
In a Thursday report, Fitch analysts noted Aston Martin’s sales fell 17% year-on-year by end-September, while their decline has accelerated quarter-on-quarter.
Fitch expects the company’s free cash flow will remain negative until 2028 but sees improvements in operating profits in 2026.
The analysts pointed to rising competition and softer overall demand for luxury sports cars.
They noted US-specific customer demand remains uncertain after the introduction of tariffs earlier this year and a subsequent decline in second- and third-quarter US car sales.
Aston Martin raised prices in June in response to US tariffs as it resumed shipments to the country.
Though well-recognised as a luxury brand, Aston Martin has the highest leverage and weakest free cash flow generation among car original equipment manufacturers in Fitch’s ratings purview.
Fitch’s downgrade to CCC+ of Aston Martin Lagonda Global Holdings, the carmaker’s parent company, signals high credit risk and financial challenges.
Reuters
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