MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said its ratings on US-based Sirius Satellite Radio Inc remain on developing watch after the US justice department said it will not block its proposed merger with XM Satellite Radio Holdings Inc.
The merger must still be approved by the Federal Communications Commission (FCC), the rating agency said.
The ratings were placed on developing watch on March 4 due to concerns over standalone refinancing risks Sirius might face in 2009 if its merger with XM Satellite Radio wasn't approved.
The ratings remain on developing watch pending clarification of the ultimate capital structure and refinancing needs of a combined entity, which could be challenged by the currently tight credit environment, S&P said. tfn.newsdesk@thomson.com ans COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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