This is old news, but some may not have seen it..
S&P Upgrades Sirius XM On Refinancings, Improved Results
12:20 PM ET 8/13/09 | Dow Jones
DOW JONES NEWSWIRES
Standard & Poor's Investors Services raised its credit rating on Sirius XM Radio Inc. (SIRI) one notch out of highly speculative territory, citing several debt refinancings and improved results.
The company has posted earnings before interest, taxes, depreciation and amortization the past three quarters. That, plus the rounds of refinancings taken place the past six months, shows S&P's "increased comfort" with the satellite-radio company's near-term liquidity, said analyst Hal Diamond.
The credit ratings company raised Sirius XM's corporate credit rating to B-minus from triple-C-plus. The ratings outlook is stable. S&P gave a one-notch upgrade to the company in April as its liquidity began to improve after receiving $530 million in loans from Liberty Media and its controlling shareholder and chairman, John Malone. The move helped to refinance significant debt coming due this year.
Shares recently were up 5.9% at 54 cents amid a small overall market upturn.
Sirius XM, formed just over a year ago by the merger of the only two U.S. satellite-radio companies, has faced a mountain of debt and has been hurt by the sharp downturn in U.S. auto sales, a large source of subscribers.
