Sirius XM #2 On 'Likely To File For Bankruptcy' List
September 17, 2009 at 4:45 AM (PT)
AUDIT INTEGRITY has published a list of the companies most likely to file for bankruptcy protection over the next 12 months. Drug Store RITE AID leads the list of death-pool stocks that command market caps greater than $1 billion, writes THE MOTLEY FOOL, with a 10.5% risk of filing.
SIRIUS XM RADIO follows, with a 9% chance of declaring bankruptcy over the next year.
THE MOTLEY FOOL disagrees, writing "SIRIUS XM may have been teetering on the brink of fiscal collapse earlier this year, but a timely LIBERTY MEDIA cash infusion slayed those demons. Yes, LIBERTY MEDIA is also on AUDIT INTEGRITY's top-10 list -- with a 5.6% probability of buckling -- but SIRIUS XM already has the money. The satellite-radio giant recently extended looming debt maturities and has replaced debt with borrowings at more attractive rates."
AUDIT INTEGRITY does concede that SIRIUS XM isn't in as grave a position as it was earlier this year. Its quarterly Accounting and Governance Risk score has gone from the lowest 1% rating after SIRIUS XM's first quarter to 6% following the second quarter.