Satellite Radio Stocks Fall After Downgrade

Satellite radio stocks fell after a Merrill Lynch & Co. analyst downgraded their ratings.

Shares of XM Satellite Radio Inc.--which went from an “intermediate” buy to “neutral” rating--dropped 47 cents to $5.75. Sirius Satellite Radio Inc.--which went from “neutral” to “reduce/sell”--fell 59 cents to $3.01. Both trade on Nasdaq.

Analyst Marc Nabi blamed the “current telecom/media malaise” for the downgrade, saying it could harm the companies’ abilities to raise funding.