Sirius XM Holdings Inc (SIRI)

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More good news !!

http://www.chron.com/disp/story.mpl/ap/fn/4180596.html

Sept. 12, 2006, 10:03AM
S&P Raises Sirius Rating Outlook


© 2006 The Associated Press

NEW YORK — Standard & Poor's Ratings Services on Tuesday increased its outlook for Sirius Satellite Radio Inc. debt to "positive," citing the company's growing subscription base.

Standard & Poor's also affirmed Sirius' credit ratings, including the "CCC" rating on the company's corporate debt. Under S&P's system, "CCC" indicates a high risk for default, also known as "junk" grade debt. S&P said Sirius had about $1.1 billion in debt as of June 30.

The outlook, which had been "stable," indicates the direction in which the ratings may move.

Sirius is the second-largest satellite radio operator behind XM Satellite Radio Holdings Inc. But Sirius, which began broadcasting shock jock Howard Stern in January, has closed the gap in the past six months, signing up new subscribers at a faster rate than XM.

After a 64 percent increase in net subscribers in the second quarter, Sirius boosted its full-year target to 6.3 million subscribers. Meanwhile, XM revised its subscriber target downward to between 7.7 million and 8.2 million, citing a soft retail market and product compliance issues.

Sirius shares rose 8 cents, or 2 percent, to $3.98 in recent trading on the Nasdaq.