3rd Apr 2019 18:11
LONDON (Alliance News) - Moody's Investor Service on Wednesday affirmed its bond ratings on Aston Martin Lagonda Global Holdings Ltd and said its outlook is stable after announcement of a planned USD190 million note issue by the luxury car maker.
Moody's affirmed the B2 instrument ratings on Aston Martin Capital Holdings Ltd's existing bonds, and assigned a B2 corporate family rating and B2-PD probability of default rating to Aston Martin.
Moreover, due to a reorganisation, Moody's withdrew the B2-PD probability of default rating and B2 corporate family rating assigned to Aston Martin Holdings UK Ltd.
"The rating actions follow the company's announcement to issue USD190 million of additional notes to support the company's investment program and funding position," said Moody's.
Moody's said its affirmations and ratings assignments are a reflection of Aston Martin's "continued progress in executing its strategy", which it said had produced growth in volume, revenue, and earnings before interest, taxation, depreciation, and amortisation.
At present, Aston Martin's adjusted debt to earnings ratio is at least 24.1 times, however, so Aston Martin is "weakly positioned" within the ratings, Moody's said.
The stable outlook is predicated upon a continued demand for Aston Martin models so that the company's Moody's -adjusted debt to earnings ratio falls below 6.0 times by 2020 and "significant free cash flow improvements". It does not account for a 'no-deal' Brexit.
Shares in Aston Martin closed up 2.4% at 1,023.73 pence on Wednesday.
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Aston Martin Lagonda