Critical role in the home finance system in the U.S. Excellent asset quality Strong efficiency Internal financial reporting systems Declining market position Rebuilding a culture of internal controls around financial reporting and accounting policy High expenses and management time diverted to the accounting restatement process On Dec. 7, 2006, Standard&Poor's Ratings Services removed its 'AA-' risk-to-the-government, subordinated debt, and preferred stock ratings on Fannie Mae from CreditWatch with negative implications, where they were placed on Sept. 23, 2004. The rating action reflects Fannie Mae's progress in its accounting restatement process and the build-up of a stronger capital position. Fannie Mae has maintained a regulatory mandated, 30% capital surplus above its regulatory minimum capital requirements for four consecutive quarters.
