On Nov. 5, 2008, Standard&Poor's Ratings Services raised its rating on Freddie Mac's subordinated debt to 'A' from 'BBB+' and removed the rating from CreditWatch Positive where it was placed Sept. 7, 2008. The outlook is stable. The rating action reflects our view of both the explicit government support these securities enjoy while Freddie Mac operates under conservatorship, and its weakened financial profile. Freddie Mac's primary regulator, the Federal Housing Finance Agency (FHFA) has stated that Freddie Mac will continue to make interest and principal payments on its subordinated debt, even if it fails to maintain required capital levels. As a result, the terms of any Freddie Mac subordinated debt that provide for it to defer payments of
