On Dec. 16, 2004, Standard & Poor's Ratings Services said that its 'AA-' risk to the government, subordinated debt, and preferred stock ratings on Fannie Mae remain on CreditWatch Negative, where they were placed on Sept. 23, 2004. Now that the SEC has determined that Fannie Mae should restate its financial statements for the years 2001 through 2004, maintenance of the ratings at the current level will require 1) demonstrated progress on the part of Fannie Mae in rebuilding its regulatory capital; 2) evidence that the company is vigorously overhauling internal management controls; and 3) evidence of continuing compliance with the terms of the agreement between Fannie's board and its regulator, the Office of Federal Housing Enterprise Oversight (OFHEO), which...
Companies mentioned in this report are:
- Fannie Mae
Action: CreditWatch Update
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.
Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.