The 'B+' corporate credit rating on New York, N.Y.-based Sirius XM Inc. reflects our expectation that the company's debt leverage will remain high for the remainder of 2010 and 2011, reflecting limited discretionary cash flow. The company's position as the only U.S. satellite radio operator, integration-related operating synergies, and cost savings arising from the 2008 acquisition of XM Satellite Radio Holdings Inc. are modest positives that do not offset these risks. We view Sirius' business risk profile as weak because of its dependence on U.S. automotive sales and consumer discretionary spending for growth, as well as competition from alternative media. The company has a highly leveraged financial profile, in our view, because of very high debt usage. Revenues and EBITDA
