Aston Martin - comment

The downgrade to CCC+ will restrict some investors; however, the overall impact is small. Management has already highlighted that some Valhalla deliveries will slip into Q1 26. This is noteworthy given the unit cost of £850k+ (average sale price ex-specials is c£200k), and highlights why the Valhalla and other specials, with their higher gross margins, are so important to Aston Martin. Turning to financial outlooks, S&P expects revenue of £1.8bn (vs our estimate of £1.7bn) as wholesale units recover. Additionally, whilst S&P expects liquidity to be adequate, we think £200m of cash may be needed to bolster liquidity as our assumption for the recovery in volumes is pushed further out than S&P’s.

https://www.spglobal.com/ratings/en/regulatory/article/-/view/sourceId/101650625