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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 On Ice reminds us how fun winter can be

Things are finally starting to thaw near the Autoblog headquarters in Detroit, with spring just around the corner. We're already celebrating some slightly warmer temperatures, and looking ahead to sunny days and top-down drives. But winter isn't all bad – especially for car enthusiasts. Yes, with the right formula of fresh powder and winter tires, the cold season can prove hilariously fun for folks who love to drive. In that spirit, Aston Martin hosted its second-annual (in the US, anyway) 'On Ice' program in Colorado, where owners were given the opportunity to slide around in the British automaker's wares, hanging the tails out and generally (we assume) having a blast. Rather than bore you with more details, we'll let you see all the fun that was had, in the gallery above. It almost makes us wish winter would stick around a little longer. Almost. For more information about the Aston Martin On Ice program, check out the (old) press blast below. Related Video: Aston Martin are to host their second annual ice driving program in Colorado in February, offering thrill seekers a unique driving experience in the heart of the Rocky Mountains. Taking place among the dramatic Crested Butte mountain range, the 'On Ice' program gives Aston Martin enthusiasts the chance to hone their driving skills in a spectacular setting over three days. The iconic British car makers have custom built an ice track for the program, comprising a braking/cornering exercise loop, slalom, skid pad and full circuit. Under expert tuition, participants are guided through the facility, before embarking upon a series of braking, cornering and handling exercises and then putting their skills to the test on a mile-long frozen road course. Luxurious accommodations will be provided for all three days at the exclusive boutique hotel properties of the Eleven Group that are nestled in the mountains. Julian Jenkins, President of Aston Martin The Americas, said: "After this hugely successful first year we expect the On Ice program to become a mainstay of our customer experience offerings here in North America. "The ability to experience a range of our cars in a unique and controlled environment resonates with Aston Martin customers and enthusiasts who are united by a shared passion for driving." As well as the 'On Ice' driving program, guests will also have the chance to indulge in other activities including skiing and exploring the back country on a fleet of snow mobiles.

Get your Aston Martin Vulcan in Ohio for just $3.4 million

Want to get your hands on an Aston Martin Vulcan? Good luck: the manufacturer is only building 24 of them, and each carries a price tag of over $2 million. But if you're willing to shell out, there's one for sale in Cleveland. This Fiamma Red example listed for sale on the duPont Registry is described as the first Vulcan in the United States. It bears the VIN AMLVULCANXXXXXX07, indicating that this is the seventh of those two dozen examples to be made. And it can be yours for the small matter of $3.4 million, which is one heck of a markup on a vehicle that's already enormously expensive. The Vulcan, for those unfamiliar, is the supercar that Aston Martin built specifically for use on the track. That puts it in the same league as the McLaren P1 GTR and Ferrari FXX K. The Vulcan features an old-school naturally aspirated 7.0-liter V12 rated at over 800 horsepower – mounted up front but entirely behind the axle. It's built around a carbon-fiber tub that's even stronger and lighter than the one at the center of the One-77. And that aero kit derived from Aston's GT3 racer will generate as much as 3,000 pounds of downforce at top speed. The Aston is also more rare than its counterparts, of which McLaren will build 35 and Ferrari fewer than 40. That's rather rare company indeed, in which the Vulcan looks poised to be the rarest. So if you want to gain admission into the club, it won't come cheap. Related Video: