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Fitch Takes Freddie Debt Off Watch List.(Brief article)

Mortgage Servicing News

| August 01, 2006 | COPYRIGHT 2006 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

NEW YORK -- Fitch Ratings has affirmed Freddie Mac's debt and preferred stock ratings and removed from Rating Watch Negative its subordinated debt and preferred stock ratings.

The affirmed ratings were as follows: issuer default, AAA; long-term senior debt, AAA; short-term debt, F1-plus; subordinated debt, AA-minus; and preferred stock, AA-minus. In addition, Fitch said it has assigned a support rating of 1 to the government-sponsored enterprise, meaning that the rating agency believes Freddie Mac's senior debt obligations and guaranteed mortgage-backed securities "would receive external support should it become necessary."

Fitch noted that it had placed Freddie's subordinated debt and preferred ...

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Source: HighBeam Research, Fitch Takes Freddie Debt Off Watch List.(Brief article)

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