The credit rating on Sirius XM Radio Inc. (SIRI) has been raised by Standard & Poor's Investors Services to one notch away from highly speculative.
The rating was raised due to the Company's various refinancing arrangements and improved income results. The credit ratings company raised Sirius XM's corporate credit rating to B-minus from triple-C-plus. The ratings outlook is stable. S&P gave a one-notch upgrade to the company in April as its liquidity began to improve after receiving $530 million in loans from Liberty Media and its controlling shareholder and chairman, John Malone. The move helped to refinance significant debt coming due this year. Sirius XM has faced a mountain of debt and has been hurt by the sharp downturn in U.S. auto sales, a large source of their service subscribers.