S&P rates Sirius XM notes B-

Standard & Poor's said it assigned Sirius XM Radio Inc.'s proposed $550 million senior notes due 2015 a rating of B- and a recovery rating of 5.

The B corporate credit rating was affirmed.

The outlook is positive.

Proceeds will be used to refinance the $500 million 9 5/8% notes due Aug. 1, 2013, which are callable.

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

Sirius XM's position as the only U.S. satellite radio operator and the integration-related operating synergies and cost savings from the 2008 acquisition of XM Satellite Radio Holdings Inc. help support ratings, the agency said.

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