Shares in Italian eyewear maker Safilo (SFLG.MI) fell nearly 5% after Fitch became the latest agency to lower its rating on the company, downgrading its Long-term Issuer Default Rating to "CC" from "B-". One broker says Safilo is subsiding after recent positive newsflow on private equity interest as well as credit downgrades.

The downgrade comes after Moody's lowered Safilo's corporate family rating to "CAA2" from "B3" and Standard & Poor's Ratings Services cut its corporate credit rating to "CC" from "CCC+" late on Wednesday 24 June.

"Ratings are likely to be downgraded further in the event of more severe trading deterioration or if banks withdraw support to Safilo," Fitch said.

The market is also waiting for news on talks Safilo has to find a partner to strengthen its balance sheet, market players have said. The eyewear maker has also started talks with creditor banks to seek a waiver to its debt covenants.

At 1251 GMT, shares are down 4.09 percent to 0.445 euro, while the Ftse/All Share .FTITLMS is up 0.02 percent.