Aston Martin was pushed even deeper into junk bond territory after Fitch Ratings downgraded the luxury automaker’s credit rating to CCC+, citing worsening cash flow, increasing financial pressures and the growing impact of U.S. tariffs on its largest market.
The downgrade from ‘B-‘ reflects what Fitch described as “deteriorating liquidity” following significantly weaker and negative free cash flow in the first nine months of 2026. The agency now forecasts a free cash flow deficit of £400 million in 2025, significantly worse than previously expected, and predicts cash flow will remain negative until at least 2028, even after planned reductions in capital and operating expenditure.
Fitch also warned that political uncertainty in the US poses a significant challenge for the company. Although Aston Martin enjoys a relative advantage over its European rivals under the U.S.-U.K. trade deal, tariffs imposed earlier this year have weakened consumer confidence in the brand’s most important market.
The automaker introduced an additional 3% price increase – its second increase this year – to offset the impact of the tariffs. While early pre-purchase activity boosted sales in the first quarter, unit sales in America fell slightly in the second quarter and the decline deepened in the third quarter.
The downgrade follows Aston Martin’s profit warning last month, when the company blamed Donald Trump’s pay system directly for weaker performance and subsequently cut £300 million from its investment plans.
Fitch’s latest assessment deepens a challenging time for the company, which has suffered repeated financial setbacks in recent years – despite high-profile fundraising rounds and a product overhaul that should restore long-term profitability.
With liquidity under pressure, weaker demand in the U.S. and years of negative cash flow still forecast, the downgrade signals a larger struggle for Aston Martin as it navigates a turbulent economic and political environment.
