Aston Martin Vantage: 2007, 6 Speed Coupe, Onyx Black Metallic on 2040-cars

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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.

Overnight action from the 24 Hours of Le Mans

We won't go into a recap here, but there are still leading positions being fought for in all classes - it's so close that leads are changing when a car goes into the pits. We'll let the recap wait until the end of the race, so for now enjoy some shots from last night's action at the 24 Hours of Le Mans.

Aston Martin-Red Bull 001 details: 175 units, $3M, 0-200-0 in 15 seconds

The Aston Martin AM-RB 001 is starting to sound like it will be the most extreme hypercar ever made. We're basing that on a series of new comments made by Red Bull Racing's resident aerodynamic genius and chief technical officer, Adrian Newey, in an interview with The Wall Street Journal's Dan Neil. Newey shared many interesting nuggets, so we'll try to provide a simple summary of how frighteningly potent the AM-RB 001 is. The new hypercar should hit 200 miles per hour in around 10 seconds, while a massive set of brakes will cut that speed to zero in half the time – in other words, zero to 200 to zero in just 15 seconds. That kind of stopping power sounds physically painful. Certain versions of the 001 will make up to 4,400 pounds of downforce, and if that's not enough to keep the car pasted to the pavement through 4G bends, Newey hinted that the active suspension will rely on the ground effect more than any other car. "I studied aero at the University of Southampton," Newey told Neil. "My final-year project in 1979 and '80 was on ground-effects aerodynamics applied to road cars and sports cars." Beyond the performance stats, Newey verified some of the broader questions about the 001's availability. For one, Aston Martin and Red Bull will build 175 examples of the potentially record-breaking hypercar, with 150 designated for road use and another 25 limited to the track – they're the ones that will enjoy the 4,400 pounds of downforce and full-on 4G cornering ability – so the chances you'll ever encounter a 001 in the wild are almost nil. And buying one? Plan on spending at least $3 million. Newey, along with Aston Martin Chief Designer Marek Reichman and Project Engineer David King, reveal more about the 001 in the piece, including some of the philosophical and design principles behind a $3M hypercar. It's very much worth a read, if you can get around the WSJ's pay wall. Related Video: