The rating on Sirius XM Radio reflects our expectation that debt levels will remain relatively stable, but that the company will continue to reduce gross debt to EBITDA, adjusted for operating leases and purchase price accounting adjustments, to the mid-3x area by the end of 2012, through EBITDA growth. We assess the company's business risk profile as "fair" (as we define the term in our criteria), reflecting its relative stability, its dependence on U.S. auto sales and consumer discretionary spending for growth, and its longer-term vulnerability to competition from alternative media. We view Sirius XM's financial risk as "significant" (as defined in our criteria) because of recurring periods of capital intensity and the absence of a revolving credit facility for
