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Thread: Sirius XM's senior unsecured notes

  1. #1
    trippingthespeculatingpos is offline
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    Joined: Dec 2008 Location: San Antonio Posts: 2,884

    Sirius XM's senior unsecured notes

    Taken from Brandon's latest article
    "Not only did S&P raise Sirius XM's corporate credit rating from CCC to CCC+, it did so while simultaneously removing all Sirius XM debt from credit watch negative. The only piece of credit that was not affected by these rating upgrades were Sirius XM's senior unsecured notes, which remain at CCC-."


    So my question is why did they leave it at ccc-? can any1 shed some light as to why they would not upgrade the Sirius XM senior unsecured notes as well?

    These S&P upgrades are confusing as hell.

  2. #2
    JohnnyIrishXM is offline
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    Joined: Feb 2009 Location: Valley Forge ,PA Posts: 1,583
    Quote Originally Posted by trippingthespeculatingpos View Post
    Taken from Brandon's latest article
    "Not only did S&P raise Sirius XM's corporate credit rating from CCC to CCC+, it did so while simultaneously removing all Sirius XM debt from credit watch negative. The only piece of credit that was not affected by these rating upgrades were Sirius XM's senior unsecured notes, which remain at CCC-."


    So my question is why did they leave it at ccc-? can any1 shed some light as to why they would not upgrade the Sirius XM senior unsecured notes as well?

    These S&P upgrades are confusing as hell.
    The simple answer is one word Tripp,UNSECURED,which means that with Liberty involved and debt still an issue for 2011 if companies profit forcast doesn't pan out,all secured debt will be paid off in case of BK.
    But common stock and unsecured debt probably won't be..Hence the unsecured bonds are trading low and of course we all know about SP...This is why i think 2Qreport will be most important one for siriusXM,as they should have a good picture of synergies and auto market by august2009 and be able to give good guidance for rest of 2009 and beyond..this is when SP will move, after 2Q report IMHO..
    Last edited by JohnnyIrishXM; 04-15-2009 at 07:41 AM.

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