...The rating reflects Aston Martin Lagonda Global Holdings PLC's strong brand value and exclusivity, recognised high-end products and historical footprint in the fast-growing luxury car segment, which mitigates a weak financial profile. This is demonstrated by the company's solid record of maintaining pricing power and brand appeal, despite an aging product pipeline until recently. In addition, Aston Martin has supplier arrangements with Mercedes-Benz Group AG (MBG; A/Stable) and Lucid Group Inc. (battery drivetrain), which could ease the high investment requirement of the auto sector. Fitch Ratings views Aston Martin's financial profile as weak, including negative EBIT and free cash flow (FCF) in recent years, as well as high leverage. Nevertheless, we forecast that Aston Martin will be cash-flow neutral within two years, driven by a new sports model line-up and lower investment needs, and assume the company will largely deliver on its business plan....
