On Aug. 26, 2008, Standard&Poor's Ratings Services affirmed its 'AAA/A-1+' senior unsecured debt rating on Freddie Mac with a stable outlook. At the same time, we lowered the risk-to-the-government stand-alone issuer credit rating to 'A-' from 'A', the subordinated debt rating to 'BBB+', and the preferred stock rating to 'BBB-' from 'A-'. The ratings that were lowered are all placed on CreditWatch Negative. Our expectation of continued government support for the mortgage government-sponsored enterprises (GSEs), as detailed in the description of their expanded role in the U.S. Treasury's Economic Stimulus Plan released earlier this year, is reflected in our affirmation of the long-term 'AAA' and short-term 'A-1+' senior unsecured debt ratings. The GSEs' mortgage franchises are viable and
