Freddie Mac 'A-' BFSR outlook revised to negative, ratings affirmed - Moody's |
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Published
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Thu, 22 Nov 2007 06:29
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MUMBAI (Thomson Financial) - Moody's Investors Service said it has revised to negative the outlook on Federal Home Loan Mortgage Corp's (Freddie Mac) 'A-' bank financial strength rating (BFSR), 'Aa2' subordinated debt and 'Aa3' preferred stock ratings.The ratings agency also affirmed all its ratings, including the 'Aaa' senior debt and 'Prime-1' short-term ratings, on Freddie Mac, a government-sponsored lender.Moody's said the outlook change follows Freddie Mac's third quarter net loss of 1.8 bln usd, largely driven by higher provisioning for credit losses, increased losses on loans repurchased from participation certificates and declines in the mark-to-market value of credit guarantees.The outlook on Freddie Mac's 'Aaa' senior debt and 'Prime-1' short-term debt ratings remains stable, Moody's said.The ratings firm said material legislative changes that affect the company or US government support for its housing mission is highly unlikely for a downgrade of Freddie Mac's long and short-term senior bond ratings.A reversion to a stable outlook of Freddie Mac's BFSR is likely if its actual credit losses remain at or near the 11 basis points of expected levels, or profit levels offset actual credit, Moody's said.TFN.newsdesk@thomson.comypv/manCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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