Sirius XM Radio Inc.'s rating reflects its substantial debt load, dependence on slumping U.S. automotive sales, and modest--albeit increasing--EBITDA and discretionary cash. The operating synergies and cost savings arising from the 2008 XM Satellite Radio Inc. acquisition are modest positives that do not offset these risks. The company also achieved positive EBITDA of $132.2 million in the three months ended June 30, 2009, versus an EBITDA loss of $61.1 million a year ago, despite a small 1.1% revenue increase. Profitability improved as a significant reduction in fixed costs more than offset a 1% decline in subscribers resulting from lower U.S. auto sales. The sharp decline in auto sales and lower retail sales of Sirius XM systems resulted in a 3%
