By Relmor Demitrius
S&P credit rating agency raised Sirius XM’s (Nasdaq:SIRI) corporate credit rating from B- to B today. They also are maintaining their Postive Outlook on the company, which means future upgrades are possible. The news comes off of a press release from Sirius XM earlier this month citing continued subscriber growth, and meeting free cash flow guidance for the year. For the entire year of 2009, Sirius XM Radio achieved positive FCF of over 100 million dollars. This is almost a 600 million dollar reversal from 2008.
S&P also cites high leverage debt and weak auto sales as potential future concerns.
More news on this issue later.
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Relmor, Great job getting this credit upgrade news out so promptly! As SXM’s credit ratings continue to improve they should be able to refinance debt under much better terms…the future continues to get brightet!