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Bond, junk bond? Aston Martin financial ratings go south as it awaits DBX

Ratings agencies Standard & Poor's and Moody's have taken a dim view of Aston Martin Lagonda. S&P cut its credit rating on the storied carmaker deeper into junk territory this week, and Moody's revised its credit outlook to "negative" after the company raised $150 million in debt from a bond issue at 12% interest, with the option to raise another $100 million at 15%. The Standard & Poor's rating was trimmed by one notch to 'CCC+', which reflects substantial risks and takes it close to default territory after a faster-than-expected cash burn this year. The outlook is negative.  The negative outlook reflects ongoing pressure on profits, a high cash burn, and very high leverage in the face of heightened risks linked to a potential no-deal Brexit and new tariffs on car imports threatened by the United States. The potential salvation for the company is its new DBX luxury SUV, the success of which is critical to its ambitious growth strategy and ongoing creditworthiness, S&P said. But Moody's noted that it's burning cash at a high rate as it nears the launch of the DBX. The British carmaker, known as James Bond's favorite marque, has been hit by falling demand in Europe, the Middle East and Africa. It slumped to a first-half loss in July. Chief Executive Andy Palmer said concerns around Brexit and U.S.-China trade relations were skewing the outlook to the downside, so it was prudent to address investor concerns about its balance sheet. "Taking this debt on — short-term debt — is we think the correct tool to completely remove that thesis that we don't have sufficient liquidity," he told Reuters. "In every substantial and material way, this ensures that we can get through to DBX in spite of what all of those global uncertainties might throw at us." The main tranche comprises notes with an interest rate of 12% due in 2022, while the additional notes could be issued under the same terms if permitted, or could be issued as unsecured notes with an interest rate of 15%, Aston Martin said. Shares of stock in the company, which have had a precipitous fall since they listed in London in October 2018 at 19 pounds, were trading down 5% at 545 pence in early deals. Broker AJ Bell said Aston Martin was known for its high end prices and that situation now also applied to its debt. "These rates are very high and are a major red flag that investors consider the car company to be a high risk entity," it said.

Aston Martin working on a limited-edition DBR1-inspired speedster?

The Supercar Blog has heard from its supercar-privy sources that Aston Martin might be working on a new speedster. The putative roofless model could be inspired by the most important and most valuable racer in Aston Martin's history, the DBR1 that took overall honors at the 24 Hours of Le Mans in 1959. Thought to be limited to just 88 units, TSB said the carmaker might have held a VIP preview event during Monterey Car Week last month. If the English luxury maker is developing such a model, we can probably declare the speedster era officially open for business after the limited-edition Ferrari SP1 and SP2 Monzas, Porsche 911 Speedster, and the Ultimate Series speedster that McLaren recently admitted is on the way. As with the Aston Martin, all of the other high-bucks open-sky models take inspiration from racers of yesteryear.  Furthermore, if Aston Martin really has such plans, the carmaker would be re-opening a six-year-old chapter in company history. In 2013, Aston Martin unveiled the CC100 Speedster (pictured) at the 2013 Nurburgring 24-Hour race, created in just six months to celebrate the 100-year anniversary of Lionel Martin and Robert Bamford deciding to build vehicles together. The CC100 was built on the VH platform utilized by the brand's production cars, and used a 6.0-liter V12 with 565 horsepower to do 0-60 mph in four seconds and reach a top speed of 180 mph. The carmaker built two of them, sold to collectors very close to the brand. Today's DBS Superleggera platform and its 5.2-liter, 715-hp V12 could make a suitable base, and who knows, Aston Martin — unlike Ferrari or McLaren — could go all the way and swap the DBS' eight-speed automatic for a manual transmission. Another site said the speedster impetus comes from "the high interest demonstrated by multiple collectors." No one has any insight on the symbolism of 88 units, though. Aston Martin did release a series of Dragon 88 models in 2012 for the Asian market, named for the auspicious omens associated with the number 8 in Chinese culture, and the Interush International team entered a #88 Vantage GT3 race car in the 2015 GT Asia Series, but that seems a gossamer thin connection. The Aston Martin One-77, after all, had a lot of sevens in its spec sheet, but was half named for its production volume. If there is a vintage-themed speedster on the way, we'll know more when Aston Martin decides to admit it.

Aston Martin DBX spied looking like a finished product

The Aston Martin DBX is inching closer to its December reveal, and today we get to see the SUV in its most finished form yet. One of our spy shooters managed to catch a DBX out and about with production headlights, taillights, door handles and rear fascia. It’s great to see the DBX like this, because until now weÂ’ve only seen it in the mule-like form that Aston wanted us to see. Taking a look at the rear end is where things really start coming together. Instead of the odd, pod-like taillights, some slick and thin light fixtures extend from the ducktail spoiler into the rear fender. They look proper on the rear end of the SUV. Just a bit below these are the two exhaust outlets. ThereÂ’s still plenty of camouflage about, but the exhaust tips and molding around it appears to be production-spec. ItÂ’s interesting to see the exhaust so high up on the rear bumper in an SUV, and they also stick out a fair amount. Just watch for the flaming hot tips when loading and unloading items directly after driving it. We also gain a better understanding of what the grille is going to look like up front. Instead of the wire mesh weÂ’ve been looking at before, this maw has actual slats and a defined shape. The headlights look like production units, and there are cutouts for possible foglights down there, too. Instead of the unfinished rear door handles, Aston appears to have installed the electric pop-out units weÂ’ve been seeing in the front for awhile. There are more creases and muscular lines visible all over the vehicle that were covered up previously, too. As September quickly approaches, the DBXÂ’s reveal in December isnÂ’t that far out anymore. A few more months will pass, and then the first Aston Martin SUV will be out. There will be plenty of Mercedes-Benz part sharing, but weÂ’re still excited to see what an Aston SUV ends up like