NEW YORK (Standard&Poor's) May 6, 2008--Standard&Poor's Ratings Services said today that it affirmed its 'AAA/Stable/A-1+' senior unsecured debt rating on Freddie Mac and placed its 'AA-' risk to the government, subordinated debt, and preferred stock ratings on Freddie Mac on CreditWatch Negative. "The action was a result of expected lower earnings for 2008 and 2009 and quarterly earnings volatility that is reaching beyond the tolerance for the 'AA-' rating. The weak residential mortgage cycle has now lasted much longer than originally anticipated, pushing the expectation for credit-related expenses higher," said Standard&Poor's credit analyst Victoria Wagner. Freddie Mac's lower core earnings performance, driven primarily by rising credit-related expenses, will continue to pressure capital measures. Credit-related
