This could occur for two reasons:
1. If you are connected via HDMI then the player could be decoding the audio codec and sending the decoded surround sound via 5/6/7.1 PCM. This is fine and will have no loss in quality.
2. You are connected via HDMI or digital coax/optical but you don't have the player set to bitstream the Dolby digital or DTS audio codecs. This will be in the audio setup menu of your player.
If you have a receiver capable of HD audio codecs(DD+, DTS-MA, TrueHD) you will want to connect your player via HDMI. If your player is capable of bitstreaming these audio codecs you will probably want to let it go ahead and do that. If not, let it decode the formats and send the data over HDMI in PCM format. This will still be surround sound if set up correctly. Either way you get the HD audio quality.
FYI, if your Blu-ray player is a PS3 it CANNOT bitstream HD audio codecs. It must pass these via PCM.