The density matrices of graphs are combinatorial laplacians normalised to have trace one (Braunsteinet al. 2006b). If the vertices of a graph are arranged as an array, its density matrix carries a block structure with respect to which properties such as separability can be considered. We prove that the so-called degree-criterion, which was conjectured to be necessary and sufficient for the separability of density matrices of graphs, is equivalent to the PPT-criterion. As such, it is not sufficient for testing the separability of density matrices of graphs (we provide an explicit example). Nonetheless, we prove the sufficiency when one of the array dimensions has length two (see Wu (2006) for an alternative proof). Finally, we derive a rational upper bound on the concurrence of density matrices of graphs and show that this bound is exact for graphs on four vertices.