Bulletin: Capital Framework Lays Foundation For Fannie Mae And Freddie Mac To Exit Conservatorship

NEW YORK (S&P Global Ratings) May 27, 2020--S&P Global Ratings today said that its ratings on Fannie Mae's and Freddie Mac's securities are unchanged by two recently announced steps in their plans to exit conservatorship: their regulator's reproposal of capital standards and their intention to hire financial advisers to facilitate the ultimate exit. Notwithstanding these steps, we continue to believe that any developments toward exiting conservatorship will not reduce, at least during our two-year outlook horizon, the likelihood that the current senior and subordinated obligations of Fannie Mae and Freddie Mac will be met. That view underpins our 'AA+/A-1+' and 'AA' ratings, respectively, on their senior and subordinated debt, which continue to have a stable outlook. We also believe the

...May 27, 2020 NEW YORK (S&P Global Ratings) May 27, 2020--S&P Global Ratings today said that its ratings on Fannie Mae's and Freddie Mac's securities are unchanged by two recently announced steps in their plans to exit conservatorship: their regulator's reproposal of capital standards and their intention to hire financial advisers to facilitate the ultimate exit. Notwithstanding these steps, we continue to believe that any developments toward exiting conservatorship will not reduce, at least during our two-year outlook horizon, the likelihood that the current senior and subordinated obligations of Fannie Mae and Freddie Mac will be met. That view underpins our '##+/A-1+' and '##' ratings, respectively, on their senior and subordinated debt, which continue to have a stable outlook. We also believe the U.S. Treasury--with which the government-sponsored entities (GSEs) have a preferred stock purchase agreement--will seek to avoid disrupting the $11 trillion residential mortgage market, particularly...

Bulletin