NEW YORK (Standard&Poor's) Aug. 16, 2007—Standard&Poor's Ratings Services said today that Fannie Mae's release of its 2006 10-K, moving the company closer to being a current filer of financial statements, does not affect the ratings on Fannie Mae (senior unsecured debt: AAA/Stable/A-1+; risk to the government: AA-/Negative/A-1+; subordinated debt: AA-/Negative/--; preferred stock: AA-/Negative/--). Fannie Mae reported net income of $4.059 billion in 2006, a 36% decline from the previous year. Overall earnings remain quite strong. The decline in earnings year over year reflects a combination of lower net interest income due to margin compression and higher operating expenses. Capital levels were higher and Fannie Mae maintains its compliance with the 30% surplus capital position over its
