S&P rates Sirius XM notes BB

Standard & Poor's said it assigned a BB rating with a 3 recovery rating to Sirius XM Radio Inc.'s proposed issuance of senior notes due 2022.

The 3 recovery rating reflects 50% to 70% expected recovery in a default.

The proceeds will be used for general corporate purposes, including refinancing its 13% senior notes due 2013.

The ratings reflect an expectation that debt levels will remain relatively stable, but that the company will continue to reduce gross debt to EBITDA to the mid-3x area by the end of 2012 through EBITDA growth, S&P said.

The company's business risk profile is considered fair, reflecting its relative stability, its dependence on U.S. auto sales and consumer discretionary spending for growth, the agency said.

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