S&P rates Sirius XM notes BB

S&P said it assigned a BB rating and 3 recovery rating to Sirius XM Radio Inc. 's proposed $750 million senior unsecured notes due 2024.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The proceeds will be used to repay a portion of its outstanding $1.5 billion 6% senior unsecured notes due 2024, S&P said.

The BB issuer credit rating and stable outlook on Sirius XM are unchanged because the proposed transaction will not affect its net leverage, the agency said.

S&P said it continues to expect the company's net leverage to remain in the mid-3x range over the next year as its spending on dividends and share repurchases exceeds its free operating cash flow.

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