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

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 rating to ‘CCC+’, citing deteriorating cash flow, increasing financial pressures and the impact of US tariffs on its largest market.

The rating, cut from ‘B-‘, reflects what Fitch described as a “deterioration in liquidity” following 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, much worse than previously expected, and expects cash flow to remain negative until at least 2028, even after planned cuts in capital and operating expenditures.

Fitch also warned that US policy uncertainty poses a major challenge to the company. Although Aston Martin enjoys a comparative advantage over European rivals under the US-UK trade agreement, tariffs introduced earlier this year have dented consumer confidence in a market that is most important to the brand.

The automaker introduced an additional 3% price increase – its second increase this year – in an attempt to offset the impact of the tariffs. While early pre-purchasing activity lifted sales in the first quarter, unit volumes in the Americas fell slightly in the second quarter and the decline intensified in the third quarter.

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

The latest rating from Fitch exacerbates a difficult period for the company, which has faced repeated financial setbacks in recent years – despite high-profile fundraising rounds and a product overhaul aimed at restoring long-term profitability.

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

Paul Jones

Harvard graduate and former New York Times journalist. Editor of Business Matters for over 15 years, the UK’s largest business magazine. I’m also Head of Automotive at Capital Business Media and work for clients such as Red Bull Racing, Honda, Aston Martin and Infiniti.

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