S&P lifts Sirius XM view to positive

Standard & Poor's said it revised its outlook on Sirius XM Radio Inc. and its subsidiaries to positive from stable and affirmed their ratings, including the B- corporate credit rating.

The agency said the outlook revision reflects improving operating performance and positive discretionary cash flow since Sirius XM Radio's July 2008 acquisition of XM Satellite Radio Holdings Inc.

Sirius XM Radio's rating reflects its high debt leverage and dependence on weak U.S. automotive sales and modest, albeit increasing, discretionary cash flow, S&P said.

The company's position as the only U.S. satellite radio operation and ongoing integrated-related operating synergies and cost savings are modest positives that do not offset these risks, in the agency's view.

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