Fitch Downgrades Aston Martin's Senior Secured Debt to 'CCC' on New Financing Structure

Fitch Ratings has downgraded the senior secured debt of Aston Martin Capital Holdings to 'CCC' from 'CCC+' and revised its Recovery Rating to 'RR5' from 'RR4'. The ratings agency affirmed the parent company's, Aston Martin Lagonda Global Holdings PLC, Long-Term Issuer Default Rating at 'CCC+'.

Rationale for the Downgrade

The downgrade reflects the introduction of new loan facilities totaling £550 million, which Fitch considers structurally senior to the company's existing senior secured notes. According to the ratings agency, these new facilities benefit from a different security package that effectively gives them priority in a recovery scenario.

This structural change, combined with what Fitch described as limited visibility on the underlying collateral, is expected to reduce the potential recovery for holders of the senior secured notes. The revised 'RR5' Recovery Rating signals poor recovery prospects, estimated at 11-30%.

Details of the New Financing

Aston Martin completed the £550 million debt raise on July 22, 2026. The new financing is composed of:

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• A £450 million senior secured term loan.
• A £100 million delayed-draw term loan, both maturing in July 2031.

Proceeds from the initial £450 million tranche were used to repay a £170 million super senior revolving credit facility and £20 million drawn from a shareholder loan. The remaining £260 million will be used for general corporate purposes.

Impact on Liquidity and Cash Flow

The new financing significantly bolsters Aston Martin's balance sheet. The company's reported liquidity stood at £145 million at the end of the second quarter of 2026, but the loan drawdown boosts pro-forma liquidity to approximately £340 million as of June 30, 2026.

Fitch forecasts a material improvement in the company's cash burn, with negative free cash flow projected to narrow to about £200 million in 2026 from £422 million in 2025. This improvement is expected to be driven by deliveries of the Valhalla supercar and reduced capital expenditures. The ratings agency stated it does not forecast a need for additional funding until 2028.