UPDATE: Disclosure Insight Downgrades Exco Resources Inc. to High Risk

A report from Disclosure Insight downgrades its rating from Medium Risk Negative Bias to High Risk on Exco Resources (NYSE: XCO).

The report states, “We are changing our rating on XCO from Medium Risk - Negative Bias to High Risk due to the company's disclosure of receipt of a subpoena from the SEC. SEC activity; acquisition activity; one-time items; concentrated revenue; related party transactions; and the chairman and CEO positions being held by one person support our opinion of a High Risk rating on XCO. In its 2Q11 10-Q filed 3-Aug-11, XCO reported that it received a subpoena from the SEC on 1-Aug-11 requesting certain information from Jan-08 to present pertaining to its proved developed producing shale gas wells and reserve estimates.”

XCO closed yesterday at $11.91.