Low credit risk profile 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 High expenses and management time diverted to the accounting restatement Standard&Poor's Ratings Services' 'AAA/A-1+' senior unsecured debt ratings on Freddie Mac reflect both the implicit government support for the 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 Freddie Mac's financial profile and the operating benefits it receives as a GSE. Freddie Mac is operating with higher
