Summary: Fannie Mae

Key to the implementation of U.S. government housing policy Dominant market position providing liquidity to the U.S. mortgage market Ongoing financial support from the U.S. Treasury Strong asset quality of loans originated since 2009 Prevented from holding and building capital by agreement with the U.S. Treasury Monoline exposure to the U.S. mortgage market Substantial uncertainties regarding impact of future potential legislative changes The stable outlooks on our ratings on Fannie Mae's debt issues reflect the stable outlook on our sovereign rating on the U.S. We could raise or lower our ratings on these debt instruments if we raise or lower our rating on the U.S. sovereign. Alternatively, if we believed that the likelihood of extraordinary government support for Fannie Mae

...Substantial uncertainties regarding impact of future potential legislative changes Outlook The stable outlooks on our ratings on Fannie Mae's debt issues reflect the stable outlook on our sovereign rating on the U.S. We could raise or lower our ratings on these debt instruments if we raise or lower our rating on the U.S. sovereign. Alternatively, if we believed that the likelihood of extraordinary government support for Fannie Mae was waning, we could also lower the rating. Fannie Mae's relationship with the U.S. government is a main rating factor. We do not envision any change in the likelihood of extraordinary government support for Fannie Mae's senior or subordinated unsecured obligations. When it becomes clearer to us how the company will position itself as it emerges from conservatorship--whether as a viable entity or placed into receivership--we will assign an issuer credit rating accordingly....

Summary