NEW YORK Aug. 11, 2008--Standard & Poor's Ratings Services said today that it affirmed its 'AAA/Stable/A-1+' senior debt rating on Fannie Mae.At the same time, we lowered our risk-to-the-government rating on Fannie Mae to 'A' from 'A+', and our preferred stock and subordinated debt rating to 'A-' from 'AA-'.
These ratings were removed from CreditWatch Negative where they were placed July 25, 2008. The outlook is negative.
(Top left photo, Federal Reserve Bank, Washington, D.C.)
The affirmation of the senior debt ratings reflects the strong explicit and implicit U.S. government support these securities hold in the marketplace, as evidenced by the recent U.S. Treasury actions. This underscores the key public policy role and the key liquidity role the congressionally chartered government-sponsored enterp
rises (GSEs) have in the U.S. mortgage market."The lower risk-to-the-government rating reflects the company's worsening financial profile, which is pressured by the continued home price declines in some of its key markets, higher credit related expenses, and capital challenges," said Standard & Poor's credit analyst Victoria Wagner.
For a complete copy of S&P's news release, pleasse contact Jeff Sexton, New York, (1) 212-438-3448, jeff_sexton@standardandpoors.com
Analyst Contacts:
Victoria Wagner, New York (1) 212-438-7406
Daniel E Teclaw, New York (1) 212-438-8716
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