Standard & Poor's raised its credit rating on XM Satellite Radio to 'CCC-plus' from 'SD' last week, with a stable outlook. XM Satellite has about $835 million in debt.
S&P said the rating action reflects XM's improved liquidity and its steady progress in executing its business plan.
XM recently restructured its debt, injecting about $225 million in cash and converting about $300 million in notes to discount paper that won't require an interest payment until June 2006.
S&P said it remains concerned about XM's debt load and the prospects for continued large cash-flow losses until it substantially increases its subscriber base.