NEW YORK (Standard&Poor's) Jan. 29, 2004--Freddie Mac's (senior unsecured debt 'AAA/A-1+') regulator, the Office of Federal Housing Enterprise Oversight, issued a letter today directing Freddie Mac to maintain a mandatory target capital surplus of 30% over its minimum capital requirement. This new regulatory directive does not change the statutory minimum capital requirement of Freddie Mac. As such, the payment deferral covenants of Freddie Mac's subordinated debt (Freddie SUBS) and preferred stock remain unchanged. Maintaining compliance with its minimum capital requirement is a requirement for Freddie Mac in order to maintain timely payment on its subordinated notes, SUBS, and preferred stock. Freddie Mac's minimum capital requirement at Nov. 30, 2003, was $25.096 billion and the company's actual capital surplus
