NEW YORK (Standard&Poor's) May 2, 2013--Standard&Poor's Ratings Services today assigned New York City-based satellite radio company Sirius XM Radio Inc.'s proposed issuance of $500 million senior notes due 2020 an issue-level rating of 'BB', with a recovery rating of '3'. The '3' recovery rating indicates our expectation for meaningful (50% to 70%) recovery in the event of a payment default. Sirius plans to use the net proceeds to repay outstanding borrowings of $150 million under its $1.25 billion revolving credit facility, and for general corporate purposes. The rating on Sirius XM Radio incorporates our expectation that leverage will not increase above our 4.5x target despite moves to boost shareholder returns, because of its good operating outlook
