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Thread: S&P downgraded SIRI's credit rating again today...

  1. #1
    Demian is offline
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    Joined: Oct 2008 Posts: 2,320

    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.

  2. #2
    imromo24 is offline
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    Joined: Aug 2008 Location: Steeler Town, MI Posts: 2,524
    yet nothing has changed except passage of a short amount of time and sirius actually lowered the amount due since the last time they lowered the rating, correct?

    I guess news from the auto industry and other businesses is at work here.

  3. #3
    dread is offline
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    Joined: Jan 2009 Location: Chicago Posts: 454
    Same old song and dance, if the credit markets don't thaw soon, every company out there with dept will be going to court.

    This is getting ridiculous!!!

  4. #4
    m4svt is offline
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    Joined: Sep 2007 Posts: 151
    that'll help us refi

  5. Ad Fairy Senior Member

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