Near-term liquidity supported by sizable liquid assets and the lack of near term maturities Large EBITDA losses and discretionary cash flow deficits; Significant debt balances; and Uncertain demand for pay radio services. Ratings reflect concern about Sirius Satellite Radio Inc.'s slow progress in executing its business plan and the ultimate demand for subscription-based satellite radio. Sirius significantly trails its only direct competitor, XM Satellite Radio Inc., in virtually all aspects of execution. Its operational progress in 2002 fell well short of its initial guidance, and the company failed to reconfirm its original subscriber target for the 2003 year-end. Sirius' subscriber growth has been hampered by delays with chipset and product development, and slow progress in reaching installation agreements with its
