Critical public-policy role in the U.S. mortgage market U.S. Treasury oversight and support for debt and mortgage-backed securities (MBS) issues Geographic diversification and strong market position Mortgage credit losses will likely exceed historic highs Earnings volatility driven by market disruption charges and higher credit expenses Weak capital levels on a managed basis Operating under a regulatory conservatorship Standard&Poor's Ratings Services' ratings on Fannie Mae reflect its public-policy role of providing liquidity and financing to the U.S. mortgage market, and the congressional charter that defines its business. Specifically, the senior unsecured debt ratings reflect the explicit government support under the U.S. Treasury's establishment of a senior preferred stock purchase agreement and liquidity support programs to be used as needed.
