On Aug. 12, 2005, 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 on Sept. 23, 2004. The company's announcement that its financial restatement for the 2001-2004 period will not likely be available prior to the second half of 2006 underscores the challenges that the company faces as it seeks to restore order to its internal accounting and controls processes. The company has committed itself to remedy these deficiencies, which have been a matter of public record since September 2004, in its agreement with its regulator, the Office of Federal Housing Enterprise Oversight (OHFEO). Demonstrated improvement in these areas,
