Moody’s ups Aston Martin, gives notes B3

Moody's Ratings said it upgraded Aston Martin Lagonda Global Holdings plc's (AML) corporate family rating to B3 from Caa1 and the probability of default rating to B3-PD from Caa1-PD. Concurrently, the agency assigned a B3 instrument rating to the new £1.1 billion equivalent backed senior secured notes with at least a five-year tenor to be issued by Aston Martin Capital Holdings Ltd.

The Caa1 instrument rating of the outstanding $1.156 billion backed senior secured first-lien notes due November 2025 issued by Aston Martin Capital Holdings, which was reviewed in the rating committee, is unchanged and will be withdrawn upon redemption. Moody’s said it changed the outlook to stable from positive for both entities.

The upgrade and the outlook change to stable from positive reflects the expectation that the company will complete the refinancing of its about $1.2 billion outstanding senior secured notes issued by Aston Martin Capital Holdings due in November 2025, the agency said.

“In addition to the extension of the maturity profile, the full repayment of the remaining c. $122 million of second-lien notes due November 2026 through an increase in senior notes should result in a meaningful reduction in AML's financing cost. Moody's notes that the upgrade of the ratings is contingent on the successful completion of the refinancing, and any failure to do so would likely result in a negative rating action,” Moody’s said in a press release.

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