Federal Home Loan Mortgage Corp.'s (Freddie Mac's) risk to the government credit rating refers to the inherent default risk of a federally related entity operating under its authorizing legislation, but without assuming an infusion of cash by the federal government. In evaluating the risk to the government, the underlying or inherent credit quality of the entity is reviewed. In determining Freddie Mac's risk-to-the-government credit rating, Standard&Poor's has incorporated the evaluation of such factors as business fundamentals, including Freddie Mac's competitive position, evaluation of management and its strategies, and examination of relevant financial measures. The underlying strengths of Freddie Mac's operating performance include the low level of credit risk and a high degree of operating efficiencies given its wholesale
