S&P downgrades Sirius XM

Standard & Poor's said it lowered the ratings of Sirius XM Radio Inc. and its unrestricted subsidiaries, XM Satellite Radio Holdings Inc. and XM Satellite Radio Inc., including lowering the corporate credit rating to CCC from CCC+.

The outlook is negative for the corporate credit rating. The debt ratings remain on CreditWatch, but the CreditWatch implications were revised to negative from developing.

The agency said the downgrade reflects its increased concern over the company's ability to refinance roughly $960 million of debt maturities in 2009 amid persistently weak credit market conditions. In addition, S&P believes the company may be challenged to meet its 2009 financial targets of $300 million of EBITDA and modestly positive free cash flow, considering the sharp decline in U.S. auto sales, which is likely to slow subscriber growth.

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