Near-term liquidity supported by sizable liquid assets; and Progress in building a subscriber base and executing the company's business plan. Large EBITDA losses and discretionary cash flow deficits; Meaningful lag behind only direct competitor in building subscription radio business; Significant debt balances; Reliance on unpredictable equity markets to boost liquidity; and Uncertain demand for pay radio in the longer term. The very low speculative-grade rating on New York-based Sirius Satellite Radio Inc. reflects the company's substantial debt load, the large projected EBITDA and cash flow deficits for this start-up business in 2006, and the increased rivalry for exclusive programming and subscribers that may continue to raise both operating costs and the time and the number of subscribers needed to reach
