NEW YORK (Standard&Poor's) Dec. 16, 2004--Standard&Poor's Ratings Services said today that its 'AA-' risk to the government, subordinated debt, and preferred stock ratings on Fannie Mae remain on CreditWatch Negative, where they were placed on Sept. 23, 2004. Now that the SEC has determined that Fannie Mae should restate its financial statements for the years 2001 through 2004, maintenance of the ratings at the current level will require 1) demonstrated progress on the part of Fannie Mae in rebuilding its regulatory capital; 2) evidence that the company is vigorously overhauling internal management controls; and 3) evidence of continuing compliance with the terms of the agreement between Fannie's board and its regulator, the Office of Federal Housing
