Low credit risk Government-sponsored enterprise (GSE) charter allows favored status of debt securities in the capital markets Long track record of managing and mitigating interest rate risk Business concentration in residential mortgage loans Inherent exposures to interest rate risk Low capital levels relative to total managed assets Expenses and management time diverted to the protracted accounting restatement The 'AAA/A-1+' senior unsecured debt ratings on Freddie Mac reflect both the implicit government support for these securities of this GSE, as elaborated in its charter and governing legislation, and its overall financial profile. The 'AA-' subordinated debt, preferred stock, and risk-to-the government ratings are based on the financial profile of Freddie Mac and the operating benefits it receives as a GSE. Freddie
