On July 25, 2008, Standard&Poor's Ratings Services affirmed its 'AAA/A-1+' senior unsecured debt ratings on Fannie Mae and Freddie Mac. At the same time, we placed our 'AA-' risk-to-the-government, subordinated debt, and preferred stock ratings on Freddie Mac, and our 'AA-' subordinated debt and preferred stock ratings and 'A+' risk-to-the-government rating on Fannie Mae on CreditWatch Negative. The affirmation of the senior unsecured debt ratings reflects the strong explicit and implicit support these government-sponsored enterprise (GSE) securities hold in the marketplace. The most recent public demonstrations of government support by the U.S. Treasury underscore the key public policy role and the key liquidity role the congressional chartered GSEs have in the U.S. mortgage markets. This is reflected in
