XM Satellite Radio Inc. is issuing $350 million of senior secured notes. We are rating the notes 'B' with a recovery rating of '1', and are affirming our 'CCC+' rating on the company. The stable outlook reflects Sirius XM's manageable near-term debt maturities and prospects for improving operating performance through integration-related cost savings. On June 23, 2009, Standard&Poor's Ratings Services assigned XM Satellite Radio Inc.'s $350 million senior secured notes due 2013 its issue-level rating of 'B' (two notches higher than the 'CCC+' corporate credit rating on parent company Sirius XM Radio Inc.). We also assigned the notes a recovery rating of '1', indicating our expectation of very high (90% to 100%) recovery for lenders in the event
