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 to the company's business model, market position, or other factors in the next two years that would alter our view that it would almost certainly receive extraordinary support from the government if needed. We are uncertain when and how government-related entities (GREs) Fannie Mae and Freddie Mac will exit conservatorship. It would most likely only take place when Congress passes broader housing finance reform legislation, although it could happen through administrative action. Currently, we expect the GREs to continue working toward making housing finance reform more feasible, including

...Our ratings on Freddie Mac's senior unsecured debt are in line ith 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 past government actions, especially during economic uncertainty, which included providing additional liquidity, mortgage forbearance by Congress, and the purchase of residential mortgage-backed securities by the Federal Reserve. 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 resulted in credit availability and liquidity support that replaces the government-related entities (GREs). Additionally, in our view, the senior preferred stock purchase agreements (SPSPAs) Freddie Mac and Fannie Mae entered into with the Treasury in 2008...

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