U.S. satellite radio company Sirius XM Radio Inc.'s EBITDA generation and debt leverage have improved, largely as a result of the resumption of subscriber growth, selective price increases, and cost reductions. We are raising our corporate credit rating on Sirius XM to 'B+' from 'B'. The rating outlook is stable. In addition, XM Satellite Radio Inc. plans to issue $550 million of senior notes, which we are rating at 'B+' with a recovery rating of '4'. The stable rating outlook reflects our view that a continued recovery in auto sales will enable Sirius XM to stimulate growth and maintain credit measures appropriate for the 'B+' rating over the intermediate term. On Oct. 13, 2010, Standard&Poor's Ratings Services raised
