S&P downgraded SIRI's credit rating again today...
http://www2.standardandpoors.com/por...,0,696862.html
Sirius XM Radio Inc. Downgraded To 'CCC' Because Of Debt Refinancing Concerns
Primary Credit Analyst:
Hal F Diamond, New York (1) 212-438-7829;
harold_diamond@standardandpoors.com
Secondary Credit Analyst:
Michael Altberg, New York (1) 212-438-3950;
michael_altberg@standardandpoors.com
Publication date: 16-Jan-2009
Reprinted from RatingsDirect
NEW YORK (Standard & Poor's) Jan. 16, 2009--Standard & Poor's Ratings Services
said today it lowered its corporate credit rating on Sirius XM Radio Inc. to
'CCC' from 'CCC+'. We also lowered the issue-level ratings on the debt of
Sirius XM Radio Inc. and of Sirius' unrestricted subsidiaries, XM Satellite
Radio Holdings Inc. and XM Satellite Radio Inc., which remain on CreditWatch,
though the implications are revised to negative from developing. We could
affirm or lower the issue-level ratings pending our review of additional
information and follow-up discussions with management. The outlook is
negative. New York City-based Sirius XM had total debt outstanding of $3.37
billion as of Sept. 30, 2008.
"The downgrade reflects our increased concern over the company's ability
to refinance roughly $960 million of debt maturities in 2009 (the first
maturity of which is due in February) amid persistently weak credit market
conditions," said Standard & Poor's credit analyst Hal F. Diamond. In
addition, we believe the company may be challenged to meet its 2009 financial
targets of $300 million of EBITDA and modestly positive free cash flow,
considering the sharp decline in U.S. auto sales, which is likely to slow
subscriber growth.
