The very low speculative-grade ratings on Sirius Satellite Radio Inc. reflect concern about the company's substantial EBITDA losses and cash consumption, and its slow progress in building its subscription-based radio business. Sirius' only direct competitor, XM Satellite Radio Inc., has nearly five times more subscribers and continues to garner a larger share of new satellite radio subscribers. Ratings also reflect the near-term benefit of Sirius' sizable liquid assets, its improved capital structure following its March 2003 recapitalization, and some operational progress. While Sirius lags XM radio, its growth has picked up, and it is making some operational progress. Sirius had 351,663 subscribers on March 31, 2004, up from 261,061 at the end of 2003 and 29,947 at the end of
