0 likes5 views

Fitch cuts Aston Martin’s credit rating to ‘CCC+’ as tariffs deepen financial strain

November 13, 2025

Aston Martin Lagonda, the UK's only listed carmaker, has issued a second profit warning in as many months and announced a £210 million fundraising effort.

Aston Martin has been pushed deeper into junk bond territory after Fitch Ratings downgraded the luxury carmaker’s credit score to ‘CCC+’, citing worsening cash flow, rising financial pressures and the impact of US tariffs on its largest market.

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. While early pre-buying activity lifted sales in the first quarter, unit volumes in the Americas slipped slightly in Q2 and the decline intensified in Q3.

The downgrade follows Aston Martin’s profit warning last month, when the company directly blamed Donald Trump’s tariff regime for weaker performance and subsequently cut £300 million from its investment plans.

The latest assessment from Fitch compounds a challenging period for the company, which has faced repeated financial setbacks in recent years—despite high-profile fundraising rounds and a product overhaul intended to restore long-term profitability.

With liquidity under pressure, weakened demand in the US, and years of negative cash flow still forecast, the downgrade signals a deeper struggle for Aston Martin as it navigates a turbulent economic and political backdrop.