The 'AAA/A-1+' senior unsecured debt ratings on Freddie Mac reflect both the implicit government support for the securities of this GSE, as elaborated in its charter and governing legislation, and its overall financial profile. The 'AA-' subordinated debt, preferred stock, and risk-to-the government ratings are based on the financial profile of Freddie Mac and the operating benefits it receives as a GSE. Freddie Mac is operating with higher capital levels than ever, given the Office of Federal Housing Enterprise Oversight's (OFHEO) Jan. 29, 2004, directive that the company hold a 30% surplus above its regulatory minimum ratio until it reaches full and timely disclosure of financial results. The higher capital level is viewed positively by Standard&Poor's Ratings Services,
