image credit: Unsplash

Aston Martin Tried to Replicate Ferrari’s IPO Success. Instead, Its Shares Are Down 75%

August 20, 2019

Via: Fortune

James Bond is famous, among other things, for getting out of tight corners. He might want to share some tips with his favorite carmaker.

Aston Martin Lagonda’s shares have lost half their value in the last month after the company was forced to cut its production forecast for this year by nearly 10%, reflecting an economic slowdown that had left dealers with too many cars in their showrooms.

The news led ratings company Moody’s to cut its rating on the company’s bonds deep into junk territory, which implies a high risk of default. Moody’s analyst Tobias Wagner cited the company’s high leverage and weak cash flow, and the low chance of meaningful improvement by next year.

Read More on Fortune