The very low speculative-grade rating on New York, N.Y.-based Sirius Satellite Radio Inc. reflects the company's substantial debt load, large projected EBITDA and cash flow deficits for this start-up business through at least 2007, and 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 break-even cash flow. These risks are minimally offset by the near-term benefit of Sirius' sizable liquid and current access to the capital markets. 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
