Fitch Ratings announced on 31 July 2026 that it has downgraded the senior secured debt rating of Aston Martin Capital Holdings Limited to CCC from CCC+, and has revised the associated Recovery Rating to RR5 from RR4. The agency simultaneously affirmed Aston Martin Lagonda Global Holdings PLC’s long‑term issuer default rating at CCC+.
The downgrade is directly linked to a newly‑structured GBP 550 million loan package that Fitch treats as ranking above the existing restricted‑group debt in its recovery analysis. The package consists of a GBP 450 million senior secured term loan and a GBP 100 million delayed‑draw term loan, both of which carry a security package that Fitch deems structurally senior relative to bondholders. Limited visibility on the underlying collateral further diminishes recovery prospects for the senior secured notes.
Aston Martin completed the GBP 550 million financing on 22 July 2026. Proceeds from the GBP 450 million term loan were used to fully repay and cancel the company’s super‑senior revolving credit facility of GBP 170 million and to settle GBP 20 million drawn under the Yew Tree Consortium’s GBP 50 million shareholder loan facility. After fees, the remaining GBP 260 million is earmarked for general corporate purposes.
Liquidity at the end of the second quarter of 2026 stood at GBP 145 million, down from GBP 250 million at the end of 2025, reflecting a negative free‑cash‑flow position of GBP 198 million in the first half of 2026. The July drawdown of the GBP 450 million term loan is projected to lift pro‑forma liquidity to approximately GBP 340 million as of 30 June 2026, with an additional GBP 100 million available under the delayed‑draw facility. Fitch does not anticipate a need for further funding until 2028.
Regarding cash‑flow outlook, Fitch expects the negative free‑cash‑flow in the first half of 2026 to account for most of the full‑year cash outflow, but forecasts a material improvement to about GBP 200 million of negative free‑cash‑flow for the full year 2026, compared with GBP 422 million in 2025. This improvement is attributed to an expected delivery of roughly 500 Valhalla vehicles, a more balanced production cadence, and a reduction in capital expenditure to around GBP 300 million in 2026 from GBP 341 million in 2025.