Tuesday, April 14, 2009 11:37:03 PM
Apr 14, 2009 17:21:32 (ET)
DOW JONES NEWSWIRES
In a rare upgrade, Standard & Poor's Ratings Services raised its corporate credit rating on Sirius XM Radio Inc. (SIRI) and XM Satellite Holdings Inc., with which it merged in July, saying it was increasingly more comfortable with the company's near-term liquidity position.
Sirius XM, formed in July when the only two U.S. satellite-radio companies merged, has faced a mountain of debt and has been hurt by the sharp downturn in U.S. auto sales, a large source of subscribers.
In February, the combined company, which just months ago warned investors it faced a possible bankruptcy filing, won a $530 million investment from Liberty Media Corp., which helped the company refinance its significant 2009 debt maturities largely to 2011.
The actions were viewed as significant steps for the company, and the ratings agency on Tuesday raised its ratings on the company and XM Satellite, which it purchased in a $5.7 billion stock purchase, one notch to CCC+ and raised its issue-level ratings on the companies' debt by one notch, with the exception of Sirius XM's senior unsecured notes, which were affirmed at CCC-.
All of the ratings were removed from watch for downgrade, where they were placed in February, and the corporate credit ratings outlook is stable.
The new ratings on Sirius reflect the company's substantial debt load, historically large losses and discretionary cash flow deficits. Those negative factors are partially offset by operating synergies and cost-savings opportunities arising from its acquisition of XM Satellite, its only direct competitor.
S&P said Sirius' stock purchase of XM Satellite more than doubled the company's subscriber base and eliminated the intense competition for subscribers and overbidding for programming contracts that had impeded profitability.
The company could achieve significant operating cost savings, S&P said, though it may be challenged to meets its financial target of exceeding $300 million in earnings in 2009.
Shares were up 1.6% to 36 cents in after-hours trading.
-By John Kell, Dow Jones Newswires; 201-938-5285; john.kell@dowjones.com
(END) Dow Jones Newswires
April 14, 2009 17:21 ET (21:21 GMT
Recent SIRI News
- Howard Stern to Interview Vice President Kamala Harris Live on Tuesday, October 8, 2024 at 1:00 pm ET on SiriusXM • PR Newswire (US) • 10/06/2024 04:00:00 PM
- SiriusXM to Report Third Quarter 2024 Operating and Financial Results • PR Newswire (US) • 10/01/2024 08:30:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/30/2024 10:32:50 PM
- Form 4/A - Statement of changes in beneficial ownership of securities: [Amend] • Edgar (US Regulatory) • 09/30/2024 10:28:42 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/17/2024 12:33:04 PM
- Form S-8 POS - Securities to be offered to employees in employee benefit plans, post-effective amendments • Edgar (US Regulatory) • 09/16/2024 09:04:49 PM
- Form S-8 POS - Securities to be offered to employees in employee benefit plans, post-effective amendments • Edgar (US Regulatory) • 09/16/2024 09:03:51 PM
- Form S-8 POS - Securities to be offered to employees in employee benefit plans, post-effective amendments • Edgar (US Regulatory) • 09/16/2024 09:03:00 PM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 09/16/2024 09:01:14 PM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 09/12/2024 08:15:52 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/12/2024 12:42:22 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/12/2024 12:42:21 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/12/2024 12:42:19 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/12/2024 12:42:17 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/12/2024 12:42:15 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/12/2024 12:42:13 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/12/2024 12:42:11 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/12/2024 12:42:10 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/12/2024 12:42:08 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/12/2024 12:42:06 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/12/2024 12:42:05 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/12/2024 12:42:05 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/12/2024 12:42:03 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/12/2024 12:42:02 AM
FEATURED Element79 Gold Corp. Reports Significant Progress in Community Relations and Development Efforts in Chachas, Peru • Oct 9, 2024 10:30 AM
Unitronix Corp Launches Share Buyback Initiative • UTRX • Oct 9, 2024 9:10 AM
BASANITE INDUSTRIES, LLC RECEIVES U.S. PATENT FOR ITS BASAFLEX™ BASALT FIBER COMPOSITE REBAR AND METHOD OF MANUFACTURING • BASA • Oct 9, 2024 7:30 AM
BNCM COMPLETES MERGER WITH DELEX HEALTHCARE • BNCM • Oct 8, 2024 9:54 AM
CBD Life Sciences, Inc. (CBDL) Reaches Unprecedented Heights With Explosive Growth and Strategic Expansion in 2024 • CBDL • Oct 8, 2024 8:00 AM
Unitronix Corp. to Invest $3 Million in USA Unity Coin Project • UTRX • Oct 7, 2024 7:08 AM