Key participant in the housing-related activities of the U.S. government Strong market position in U.S. mortgage finance Continued explicit government support Ongoing credit losses in the single-family mortgage portfolio Poor earnings outlook despite low funding costs High leverage Limited political will to support the business model as part of the future of housing finance The negative outlook on Freddie Mac's debt issues reflects the negative outlook on the U.S. sovereign rating. We could lower the ratings on Freddie Mac if we lowered the rating on the U.S. sovereign, or if we viewed government support as waning. Freddie Mac's link to the government is a main rating factor. We do not envision any change in the support for the senior unsecured
