Fitch Ratings on May 21 downgraded Italy-based Azimut Holding SpA's short-term issuer default rating to F3 and resolved the under criteria observation status on the rating.

Fitch affirmed the investment manager's BBB long-term issuer default rating, with a negative outlook.

The ratings action is part of Fitch's global peer review of traditional investment managers that launched the same day.

The negative outlook reflects the agency's view of a sustained challenging operating environment in Italy and the potential adverse impact on asset values, client risk appetite and net new money flows, all of which would potentially undermine profitability.