Standard&Poor's Ratings Services affirmed all of its ratings on Freddie Mac in light of the company's announcement that its financial statements and results for the years and quarterly periods in 2002, 2001, and possibly 2000 will be restated to reflect changes in accounting policies. Management indicated that the changes primarily involve the implementation and the application of FASB Statement No. 133, which governs the accounting for derivatives financial instruments and hedging transactions. Freddie Mac's management has stated that the effect of accounting changes will be primarily confined to changes in the timing recognition of income, and changes to hedge accounting treatment, resulting in materially higher reported net GAAP income and operating earnings for those years. Based on the
