On May 19, 2008, Standard&Poor's Ratings Services affirmed its 'AAA/Stable/A-1+' senior debt rating on Freddie Mac. At the same time, we affirmed our 'AA-' risk-to-the–government, preferred stock, and subordinated debt ratings and removed these ratings from CreditWatch Negative where they were placed May 6, 2008. The outlook on the 'AA-' ratings is negative. The affirmation of the 'AA-' risk-to-the-government, subordinated debt, and preferred stock ratings reflects our expectation for reduced earnings volatility during the next two years and a strong commitment to improving capital ratios, including the level of common stock in the capital base. The affirmation of the senior debt rating and the stable outlook reflects the strong explicit and implicit support these securities carry in the
