SIRIUS XM Radio Inc. (NASDAQ: SIRI) keeps getting credit rating upgrades. This time it was S&P which upgraded SIRIUS XM and the junk-rated company is getting closer and closer to investment grade.
S&P’s hike took the rating to “BB” and the outlook is stable from “BB-” rating. Reasons cited are improved EBITDA, lower debt leverage, improved discretionary cash flow, higher subscriber growth, and rising EBITDA margins. More importantly, S&P called for a continued recovery in auto sales supporting revenue growth.
Another citation was noted that SIRIUS XM will continue to cut its gross adjusted debt leverage down to “the mid-3x area” by what should be the end of the year 2012 because of EBITDA growth.
One more positive is that, despite S&P cautioning that the company faces significant hurdles to maintaining consistent growth,” it did not exactly warn that Pandora Media, Inc. (NYSE: P) was about to give SIRIUS XM a serious run for its money even though more cars are starting to become “Pandora-enabled” in ads.
SIRIUS XM has been able to keep ratcheting down its borrowing costs and the irony of a credit rating upgrade is that these sort of moves generally allow for cheaper and cheaper borrowing rates in the future.
JON C. OGG
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.