S&P boosts Sirius XM

Standard & Poor's said it raised its corporate credit rating on Sirius XM Radio Inc. and XM Satellite Radio Holdings Inc., which it analyzes on a consolidated basis, to B- from CCC+.

The outlook is stable.

In addition, the agency said it revised the recovery rating on Sirius XM's senior unsecured and subordinated debt to 5, indicating its expectation of modest recovery for debtholders in the event of a payment default, from 6.

The agency said it raised the issue-level rating on this debt to CCC+, one notch lower than the B- corporate credit rating on the company, from CCC-, in accordance with its notching criteria for a five recovery rating.

The agency said it also raised the rest of its issue-level ratings on Sirius XM, XM Satellite Radio Holdings, and XM Satellite Radio Inc. by one notch, in conjunction with the one-notch upgrade of the corporate credit rating. The recovery ratings on these remaining debt issues remain unchanged.

At the same time, the agency said it assigned Sirius XM Radio's proposed $250 million senior secured notes due 2015 its issue-level rating of B+ while it also assigned the notes a recovery rating of 1.

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