The stable outlook reflects our expectation that leverage will remain in the mid-3x area over the next year as EBITDA growth, primarily driven by subscriber growth, is offset by incremental debt to fund shareholder returns. We could lower the rating if leverage increases above 4x on a sustained basis due to debt-funded acquisitions or shareholder returns. Alternatively, we could lower the rating if increased competition from other entertainment platforms flattens or reduces subscriber growth. We view an upgrade as unlikely given Sirius XM's publicly stated leverage target of 4x. However, we could consider an upgrade if management articulates a financial policy that keeps leverage below 3x on a sustained basis. An upgrade would also require continued subscriber and EBITDA growth
