September 26, 2019 / 12:20 PM / 2 months ago

Moody's revises Aston Martin outlook to 'negative' on high cash burn

LONDON, Sept 26 (Reuters) - Ratings agency Moody’s revised its credit outlook on Aston Martin Lagonda Holdings to ‘negative’ on Thursday, citing increased debt and “significant” further burning of cash expected around the launch of its new DBX luxury sports utility vehicle.

The outlook change comes a day after Standard & Poor’s cut the rating on the luxury carmaker’s bonds deeper into junk amid concerns over Britain’s exit from the European Union and the threat of United States tariffs.

“The negative outlook reflects the increased debt from the notes issuance, which will result in continued very high leverage for at least the next 24 months and delay deleveraging further,” Moody’s said in a statement.

The carmaker has raised $150 million from a bond issue, with the option to raise another $100 million if order targets are met, to bolster its cash in a uncertain trading environment. (Reporting by Thyagaraju Adinarayan Editing by Tommy Wilkes)

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