The rating on New York City-based Sirius XM Radio Inc. reflects the company's substantial debt load, historically large EBITDA losses and discretionary cash flow deficits, and sizable 2009 debt maturities, offset by the potential operating synergies and cost-saving opportunities arising from the July 2008 acquisition of XM Satellite Radio Holdings Inc., its only direct competitor. Standard&Poor's Ratings Services analyzes Sirius XM Radio Inc. (formerly Sirius Satellite Radio Holdings) and XM Satellite Radio Holdings on a consolidated basis for purposes of the corporate credit rating. Sirius' $5.7 billion stock purchase of XM more than doubled the company's subscriber base to 18.5 million from 8.9 million as of June 30, 2008. The combination will eliminate the intense competition for subscribers
