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Bulletin: Freddie Mac Tender Offer Will Not Affect Ratings Jul 09
Standard & Poors, July 2009
Abstract
NEW YORK (Standard & Poor's) July 10, 2009-Standard & Poor's Ratings Services said today that it its rating on Freddie Mac (AAA/Stable/A-1+) is not affected by the company's announcement of a tender offer to buy back substantially all of its subordinated debt. We view the planned move by the company as favorable. We upgraded the subordinated debt to 'A' from 'BBB+' on Nov. 5, 2008, in recognition of the government's extraordinary support of these securities. Freddie Mac's decision to launch a tender offer for $4.4 billion supports the company's stated intention to lower its funding costs. Although it is unclear what percentage of the subordinated debt holders will participate in the offer, we believe that the company will benefit from...
Companies mentioned in this report are: Freddie Mac
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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