U.S. Treasury oversight and support for debt and mortgage-backed securities (MBS) issues Strong geographic diversification in the mortgage portfolio Strong market position in U.S. mortgage finance Government support for its critical mortgage liquidity role Mortgage credit losses expected to approach record-high levels Earnings volatility driven by market disruption charges and higher credit expenses Weak capital levels on a managed basis Operating under a regulatory conservatorship Standard&Poor's Ratings Services' ratings on Federal Home Loan Mortgage Corp. (Freddie Mac) reflect the firm's status as a public policy financial institution under Standard&Poor's criteria for Government Related Entities (GREs), and its role in providing liquidity and financing to the U.S. mortgage market—a business defined by its congressional charter. The 'AAA/Stable'
