Fitch downgrades Aston Martin's ratings as US demand uncertain

By Matt Tracy

WASHINGTON (Reuters) -Credit rating agency Fitch Ratings has downgraded British automaker Aston Martin's debt ratings, citing the luxury sports car maker's persistent negative cash flow and uncertainty around its U.S. customer base.

In a Thursday report, Fitch analysts noted Aston Martin's sales fell 17% year over year as of September's end, while their decline has accelerated quarter over 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 facing Aston Martin.

They noted U.S.-specific customer demand remains uncertain, following the introduction of tariffs earlier this year and a subsequent decline in second- and third-quarter U.S. car sales.

Aston Martin raised prices in June in response to U.S. tariffs as it resumed shipments to the country.

Though well-recognized as a luxury brand, Aston Martin has the highest leverage and weakest free cash flow generation among auto original equipment manufacturers within Fitch's ratings purview.

Fitch's downgrade to CCC+ of Aston Martin Lagonda Global Holdings PLC (AMGDF), the carmaker's parent company, signals high credit risk and financial challenges.

(Reporting by Matt Tracy in Washington, D.C.; Editing by Conor Humphries)