The ratings on New York City-based Sirius Satellite Radio Inc. remain on CreditWatch, where they were originally placed with positive implications on Feb. 20, 2007. The CreditWatch placement followed the company's definitive agreement to an all-stock "merger of equals" with XM Satellite Radio Inc. (CCC+/Watch Pos/--). The proposed merger is still under review by the Department of Justice and the Federal Communications Commission, the latter of which has targeted the first quarter for its decision. If the deal is approved, Standard&Poor's Ratings Services expects the upgrade potential to be limited to one notch. Any upgrade will depend on our estimate of when the surviving company will achieve expected cost savings and become financially self-sustainable. We believe the initial
