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Bulletin: Fannie Mae's $7 Billion Preferred Stock Issuance Will Not Affect Ratings Dec 07
Standard & Poors, Dec 2007
Abstract
NEW YORK (Standard & Poor's) Dec. 5, 2007-Standard & Poor's Ratings Services said today that Fannie Mae's (risk to the government AA/Negative) announcement that it plans to issue $7 billion of preferred stock (AA-/Negative/--) and cut its common dividend 30% will not affect the ratings on Fannie Mae. These critical steps were taken to maintain a capital position that will support its core mortgage business and lower earnings due to the stress in the housing and mortgage markets. The $7 billion issuance received full capital treatment from its regulator for regulatory capital compliance, but zero equity credit based on our hybrid capital criteria. Still, this preferred stock issuance and common dividend cut will allow Fannie Mae to maintain compliance with...
Companies mentioned in this report are: Fannie Mae
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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