In Standard&Poor's view, the creditworthiness of Fannie Mae and Freddie Mac remain closely tied to the creditworthiness of the U.S. sovereign (AA+/Stable/A-1+). Since initially placing the entities into conservatorship in 2008 and providing capital, both the U.S. Treasury and the Federal Housing Finance Agency have made equally strong statements of support with regard to senior and subordinated debt. We believe that the uncertainty around the treatment of subordinated debt creditors has diminished given continued timely repayment of principal and interest on this class of debt since the crisis and the above mentioned statement of support. Further, we do not believe current proposals from Congress for reducing the role of Fannie Mae and Freddie Mac in the housing market
