The very low speculative-grade rating on New York, N.Y.-based Sirius reflects the company's substantial debt load, large projected EBITDA and cash flow deficits for this start-up business for at least the next couple of years, and increased rivalry for exclusive programming and subscribers that may continue to raise both operating costs and the number of subscribers needed to reach break-even cash flow. These risk factors are not meaningfully offset by the near-term benefit of Sirius' sizable liquid assets and operational progress. Sirius' subscriber growth has improved as it has filled some important product line gaps, secured more meaningful installation programs with its exclusive automotive partners, and expanded its retail distribution. Even so, its only direct competitor, XM Satellite Radio Inc.,
