S&P Global Ratings on Friday lowered Aston Martin Lagonda Global Holdings’ senior secured debt rating to ‘CCC’ from ‘CCC+’ and revised the company’s outlook to negative from stable, while affirming the issuer’s long-term credit rating at ‘CCC+’.
Debt recovery estimates lowered
The agency lowered its recovery rating on the debt to ‘5’ from ‘3’, reflecting a reduction in the recovery estimate to 25% from 50% previously. S&P considers newly issued debt to rank ahead in the recovery waterfall at the point of default, reducing recovery prospects for holders of the existing senior secured notes.
£550 million loan facility
Aston Martin issued a new £550 million loan facility comprising a fully drawn £450 million term loan and a £100 million delayed-draw tranche that has not yet been used.
The company used the proceeds from the £450 million facility to fully repay its £170 million revolving credit facility, as well as £20 million of drawings under a £50 million facility provided by the Yew Tree Consortium. As of 01/08/2026, Aston Martin had about £340 million in cash on its balance sheet.
The new £550 million loan facility is priced at 6.75% over the Sterling Overnight Index Average (SONIA) and matures in July 2031. S&P expects the company’s adjusted debt to rise to more than £2 billion by 31/12/2026, compared with about £1.625 billion as of 31/12/2025, while cash interest costs increase by about £30 million a year.
First-half sales and revenue growth
Aston Martin said first-half 2026 wholesale volumes rose 21%, while revenue increased 38% compared with the first half of 2025, driven by higher deliveries of special models, including Valhalla.
The company reaffirmed its 2026 target of delivering broadly similar volumes from its core range to those recorded in 2025. S&P assumes deliveries of 5,250 SUV and sports/GT units, and 500 Valhalla units, for full-year 2026, with revenue rising to more than £1.5 billion.
Negative cash flows and liquidity risks
S&P expects Aston Martin to post negative free operating cash flow of about £200 million in 2026, with free operating cash flow remaining negative in 2027. The agency also assumes the company will fully draw the £100 million delayed-draw facility in the first half of 2027.
The agency said it could downgrade the rating if liquidity deteriorates because of internal operational hurdles that delay targeted Valhalla deliveries.
