In a report by Standard & Poor’s Internet Software and Service analyst, Scott Kessler cut his rating on VeriSign to Sell from Hold.

“VeriSign faces some challenges, in our view, despite strong market positions and pricing stability in its core businesses,” Kessler said

“We see notable growth deceleration in domain-name additions and certificate transactions.

He reduced his price target on the stock to $24 from $29. Kessler also trimmed estimates for the company: for ‘08, he now sees EPS of 85 cents, down from 90 cents. For ‘09, he goes to $1.25, from $1.34.