On Feb. 29, 2008, Standard&Poor's Ratings Services affirmed its 'AAA/A-1+' senior unsecured debt ratings on Freddie Mac. The outlook remains stable. At the same time, we affirmed our 'AA-' rating on the risk-to-the-government, subordinated debt, and preferred stock ratings on Freddie Mac. The outlook remains negative. The ratings on Freddie Mac's senior unsecured debt reflect the company's very strong business franchise, its status as a government-sponsored enterprise (GSE), and under our government-related criteria, its status as a public policy institution and its key role regarding liquidity in the U.S. mortgage capital markets. The ratings also reflect the implicit U.S. government support of these securities, as it relates to Freddie Mac's charter and governing legislation. The negative outlook on
