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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 One-77 designer gives back to teacher who changed his life

It's a pretty fair bet that we've all had "that" teacher. The educator that stood out above all the others while we were in school and not only taught us, but made us into a better person – our very own Mr. Feeny, Mr. Belding, Mr. Holland or even Mr. Miyagi. The Windsor Star has the story of one such teacher and her troubled student that went on to help design some of the most desirable cars in the auto industry. Karlene Berry spent 30 years as a teacher, and among her many, many students is Michael Lehti, the product of a broken home and self-described has having "never been the greatest academic." What Lehti could do, though, was design cars. With the help of Berry's class, he overcame his early obstacles and went on to work with the design team on the Aston Martin One-77 (pictured above) and the RUF CTR3, among other vehicles. With Lehti and Benson's old school closing, the pupil reached out to his teacher 32 years after graduation to say "thanks" and pay tribute for her impact on his life. Head on over to The Windsor Star, and check out this inspiring story. Featured Gallery Aston Martin One-77 News Source: The Windsor StarTip: Mike Read This Aston Martin aston martin one-77

Aston teases a topless DB11 before official Spring launch

Aston Martin has a lot riding on the new DB11. Aston Martin's CEO Andy Palmer called the vehicle the most important car the automaker launched in recent history, and on our first drive we said the new coupe is a great first step into the automaker's second century. So it shouldn't come as a surprise to hear that the automaker is working on a Volante variant of the DB11. The automaker teased the upcoming 2018 Aston Martin DB11 Volante with three images on its Facebook page. The lightly-disguised DB11 Volante reveals the upcoming roadster will feature a folding soft-top roof, with the writing on the door indicating that the vehicle will come out in the Spring of 2018. The three images only show the upcoming Volante's rear end, which is just as good looking as the coupe's. The front end should also mimic the regular DB11's, but the fact that Aston Martin didn't release any images of the Volante's front fascia has us thinking that it could be slightly different than the coupe's. Power for the DB11 Volante is expected to come from the automaker's all-new 5.2-liter twin-turbo V12 that generates 600 horsepower and 516 pound-feet of torque. While the coupe is able to hit a top speed of 200 mph and can get to 62 mph in 3.9 seconds, the Volante will be a little slower to 62 mph and will have a lower top speed, as well. Having a roofless DB11 will also cost more than the coupe's base price of roughly $212,000. With the DB11 Volante set to be revealed in the early months of 2018, we expect to see a lot more of the roadster in the upcoming months. Related Video: