Only U.S. satellite radio operator. Stable 2% monthly churn of paying subscribers. Steady stream of new subscribers. Dependence on U.S. new auto sales for growth. Longer-term vulnerability to competition from alternative media. Moderate debt leverage, albeit slight rising, following Liberty Media Corp.'s January 2013 majority ownership stake. Currently moderate capital spending requirements, though recurring periods of capital intensity. Good discretionary cash flow generation. We assume discretionary cash flow will be consumed by share repurchases. $2 billion share repurchase authorization, though the company has not targeted the timing of completion. Adequate covenant headroom with absence of step-downs. The rating outlook is stable, reflecting our view that leverage will not increase above our 4.5x target, despite likely more aggressive financial policies following
