S&P lifts Sirius XM

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

The outlook is positive.

"The rating upgrade reflects improving operating performance, the resumption of subscriber growth, and positive discretionary cash flow since Sirius XM's July 2008 acquisition of XM Satellite Radio Holdings Inc.," S&P analyst Hal Diamond said in a statement.

The B rating reflects the company's high debt leverage, weak interest coverage and dependence on weak U.S. automotive sales, the agency said.

Sirius XM's position as the only U.S. satellite radio operator, integration-related operating synergies and cost savings are modest positives that do not offset these risks, according to the agency.

Based on the company's 2009 preliminary numbers, the debt-to-EBITDA ratio is steep at just below 8x, the agency said.

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