Standard&Poor's Ratings Services affirmed its ratings, including its 'AAA/A-1+' senior unsecured debt ratings, on Freddie Mac following the company's announcement of the restatement of its audited financial statements for the periods ended December 2002, 2001, and 2000. The ratings affirmation is based on the results of the restated financial information, which was substantially in line with Freddie Mac's management guidance offered throughout 2003. The critical changes to the restated balance sheet and income statement surround the correction of numerous errors related to adoption and application of SFAS 133 on derivatives and hedging resulting in reclassification of items that were previously recorded as eligible for hedge effectiveness to ineffectiveness as prescribed by SFAS 133. The critical net cumulative adjustments
