NEW YORK (Standard & Poor's) Dec. 7, 2006--Standard & Poor's Ratings Services today said it removed its 'AA-' risk-to-the-government, subordinated debt, and preferred stock ratings on Fannie Mae from CreditWatch with negative implications, where they were placed on Sept. 23, 2004. The ratings are affirmed and the outlook is negative. The rating action reflects Fannie Mae's progress in its accounting restatement process and the build-up of a stronger capital position. Fannie Mae has maintained a regulatorily mandated, 30% capital surplus above its regulatory minimum capital requirements for four consecutive quarters. Management of its balance sheet growth and lower returns of capital to shareholders were the primary drivers behind its achieving the 30% capital surplus position over the higher capital ratios....
Companies mentioned in this report are:
- Fannie Mae
Action: Outlook: Positive
Action: Removed From CreditWatch
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
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