Sirius XM Radio Inc. (Nasdaq:SIRI) was upgraded by Standard & Poor's Ratings, raising the rating to BB-, still 3 steps away from investment grade.
The reasons cited for the debt-rating upgrade was improved debt levels (although still high), return of Howard Stern to the fold, and increased earnings.
Expectations on leverage for Sirius going forward is it'll lower over the next couple of years. More increases in their credit rating would help with costs, as interest rates would be lower.
Some concerns are the over reliance of Sirius on Howard Stern, who had more leverage for contract talks than he should have because of a relatively meager lineup.
Sirius needs to line up more and diverse talent to ensure they can negotiate from a stronger position in the future, or it's hard to see how they could be considered a legitimate business to invest in.
Even their monopoly can't force people to accept a service that has little more than the likes of Howard Stern to drive it.
Monday, December 13, 2010
Sirius (Nasdaq:SIRI) Debt Boosted by Standard & Poor's Ratings
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4 comments:
Baba Booey, Baba Booey, Baba Booey!!!!
Your opinion is dumb!
Oprah, NFL, Martha Stewart they are certainly diversifying. And Howard Stern is the "King of Media", no one would have a better position negotiating with him. He's one of a kind.
Howard is NOT the driving force for siri. He has brought many listeners and I feel he is an asset but sirius is so much more than Howard.
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