S&P Report: The Status Quo May Continue For Fannie And Freddie
The following is a press release from Standard & Poor's: NEW YORK (Standard & Poor's) Feb. 11, 2015--Standard & Poor's Ratings Services expects Fannie Mae and Freddie Mac to be around for the foreseeable future in their current form, and we think the government will support them, Standard & Poor's said yesterday in a commentary published on RatingsDirect titled "Why The Status Quo Is Likely To Continue For Fannie Mae And Freddie Mac." Because of their significant role in the housing market, we believe the likelihood that Fannie and Freddie would receive extraordinary government support, if they were to need it, is almost certain within the current congressional and presidential terms. Therefore, our ratings and outlooks on senior debt issued by Fannie Mae or Freddie Mac will likely remain the same as those on U.S. government debt (AA+/Stable/A-1+). Ever since the steep decline in housing prices that precipitated the Great Recession, cries for reform of Fannie Mae and Freddie Mac have rung out. Of late, however, that clamor has diminished significantly with the rebound in the housing market, and it now seems likely that for the foreseeable future, the two government-related entities will continue to operate as they have. The report is available to subscribers of RatingsDirect at www.globalcreditportal.com and at www.spcapitaliq.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to research_request@standardandpoors.com.
