NEW YORK (Standard&Poor's) July 10, 2009—Standard&Poor's Ratings Services said today that it its rating on Freddie Mac (AAA/Stable/A-1+) is not affected by the company's announcement of a tender offer to buy back substantially all of its subordinated debt. We view the planned move by the company as favorable. We upgraded the subordinated debt to 'A' from 'BBB+' on Nov. 5, 2008, in recognition of the government's extraordinary support of these securities. Freddie Mac's decision to launch a tender offer for $4.4 billion supports the company's stated intention to lower its funding costs. Although it is unclear what percentage of the subordinated debt holders will participate in the offer, we believe that the company will benefit from
