The rating on New York City-based satellite radio company Sirius XM Radio Inc. incorporates Standard&Poor's Ratings Services' view that the company could adopt a more aggressive financial policy if Liberty Media Corp. gains control, but we do not currently believe gross leverage will increase above our 4.5x target for the company at a 'BB' rating. Liberty Media Corp. plans to increase its stake in Sirius XM to more than 50% from 49.5%, gaining a controlling position, subject to Federal Communications Commission approval. We assess the company's business risk profile as "fair" (based on our criteria), reflecting its relative stability, its dependence on U.S. auto sales and consumer discretionary spending for growth, and its longer-term exposure to competition from
