Sirius XM Makes New Friends

(Updates with closing share price)

Sirius XM (SIRI Quote) subscribers may not think very much of the new Apple (AAPL Quote) iPhone application, but it appears the ratings agencies are warming to the satellite radio operator's overall prospects.

After the company's XM Satellite Radio subsidiary announced Monday it would issue $350 million in senior, secured notes, Moody's Investors Service and Standard & Poor's seem slightly more optimistic on the embattled company.

In an update Tuesday, Moody's upgraded Sirius XM's speculative grade liquidity rating to SGL-3 from SGL-4, which the firm said "reflects the reduction in near term maturities due to the $350 million bond offering." Moody's also said the rating outlook remains positive. ...