On Sept. 28, 2004, Standard&Poor's Ratings Services said that its 'AA-' risk-to-the-government, subordinated debt, and preferred stock ratings on Fannie Mae remain on CreditWatch Negative where they were placed Sept. 24, 2004, despite the Sept. 27 release of the agreement reached between the Office of Federal Housing Enterprise Oversight (OFHEO) and Fannie Mae. Standard&Poor's views the published agreement as a positive step toward the resolution of the critical findings of internal controls relating to accounting, accounting issues surrounding SFAS 91 and SFAS 133, and regulatory capital compliance matters as cited in OFHEO's "Report of Findings to Date Special Examination of Fannie Mae." Nevertheless, OFHEO's issues surrounding Fannie Mae's regulatory capital adequacy remain unresolved. Until then, Fannie
