Fitch Ratings reported that it has placed the asset manager rating of Credit Suisse Asset Management on rating watch negative for its London-based investment management activities.

The firm says that this rating action follows the recent departures of several experienced and well regarded investment staff in senior positions across different investment area since last November. The departures include the head of U.K. fixed income, the two joint heads of the multi-manager business, the European head of credit and other portfolio managers who had been with the company for some years, Fitch noted. This follows on the heels of several high profile departures in CSAM’s Ltd. UK equity team earlier in 2006.

Although Fitch acknowledges that CSAM’s recent structural and strategy modifications could be expected to result in staffing changes, “the extent of the more recent turnover in key personnel has caused the agency to adjust its expectations with respect to the depth and experience of staff dedicated to the companies core investment processes, particularly those proposed to UK institutional investors,” it says.

“Asset gathering, which was fairly strong in the first three quarters of 2006 – reaping first rewards of CSAM’s more integrated platform – suffered a set back in the final three months, as 2.9 billion (Swiss francs) outflows were reported,” it says, adding that, “inflows were mainly concentrated in money market products and alternative investments while core fixed income and equity products have rather been neglected.”

The rating watch status is expected to be resolved as the staffing situation at CSAM is stabilized and/or Fitch gains a greater clarity regarding management’s plans for achieving stability.

At December 2006, CSAM managed CHF669.9 billion worldwide. The London operation managed CHF 104 billion (excluding alternative investments and real estate), representing 16 % of CSAM’s assets worldwide, with a focus on fixed income and money market products. It also offers a wide range of Luxembourg-launched mutual funds marketed under the brand name Credit Suisse, as well as segregated accounts for institutional investors.