Standard&Poor's Ratings Services' ratings on Federal Home Loan Mortgage Corp. (Freddie Mac) reflect the firm's status as a public policy financial institution under Standard&Poor's criteria for Government Related Entities (GREs), and its role in providing liquidity and financing to the U.S. mortgage market—a business defined by its congressional charter. The 'AAA/Stable' ratings on its senior unsecured securities reflect the government's explicit support, which has been newly defined under the terms of the conservatorship, as well as the U.S. Treasury's establishment of a senior preferred stock purchase agreement and liquidity support programs to be used as needed. Recent government actions, such as the Housing and Economic Recovery Act of 2008(passed July 30), underscore the importance the U.S.
