Fitch Ratings has downgraded Bear Stearns Asset Management’s rating, and the Wall Street firm remains on Rating Watch Negative.

The firm dropped BSAM’s structured finance collateralized debt obligation asset manager rating one notch. It said the rating action, “is a result of concerns stemming from recent significant changes made to the BSAM High Grade Structured Credit Strategies’ platform, including the unwinding of the team’s hedge funds.”

“While Fitch views the current team as having sufficient staffing and resources to adequately manage their outstanding CDOs, any future changes to the team’s business strategy, senior management, or staffing could impair the team’s ability to continue to perform these duties satisfactorily,” it notes.

“Further, current difficult market conditions coupled with uncertainty surrounding the future of the team’s CDO activities have led to BSAM remaining on Rating Watch Negative,” it adds.