Freddie Mac

The stable outlooks on our ratings on Freddie Mac's debt issues reflect the stable outlook on our sovereign rating on the U.S. In our base case, we do not anticipate any changes in the next two years to the company's business model, market position, or other factors that would alter our view that it would almost certainly receive extraordinary support from the government if needed. We are uncertain when and how Freddie Mac and Fannie Mae will exit conservatorship, which most likely would only take place when Congress passes broader housing finance reform legislation, although it could happen through administrative action. President Joe Biden's Administration has not outlined a comprehensive housing finance reform plan and may have a far different

...Our ratings on Freddie Mac's senior unsecured debt are in line with our ratings on U.S. government debt because we believe the government would almost certainly provide extraordinary support if needed. S&P Global Ratings views Freddie Mac as having an integral link to the government and a critical role in carrying out U.S. housing policy. Our view is supported by government actions during the COVID-19 pandemic to quell economic uncertainty, which included mortgage forbearance by Congress and the Federal Reserve purchasing residential mortgage-backed securities (MBS). The absence of Freddie Mac (and close peer Fannie Mae) would likely create major reverberations for the U.S. housing market, barring housing reform that fostered a replacement for the support the government-related entities (GREs) provide to the market. In our view, the senior preferred stock purchase agreements (SPSPAs) Freddie Mac and Fannie Mae entered into with the Treasury in 2008 further underscore the importance of the...

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