S&P cuts Freddie Mac, Fannie Mae after U.S. downgrade

NEW YORK Mon Aug 8, 2011 10:35am EDT

A sign in front of the Fannie Mae headquarters is photographed in Washington February 11, 2011. REUTERS/Molly Riley

A sign in front of the Fannie Mae headquarters is photographed in Washington February 11, 2011.

Credit: Reuters/Molly Riley

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NEW YORK (Reuters) - Standard & Poor's cut Freddie Mac (FMCC.OB) and Fannie Mae's (FNMA.OB) long-term ratings one notch on Monday.

S&P said the downgrades from the top-notch Triple-A were due to its lowering of the U.S. sovereign credit rating late on Friday.

"The downgrades of Fannie Mae and Freddie Mac reflect their direct reliance on the U.S. government," the rating agency said.

(Reporting by Edith Honan; Editing by James Dalgleish)

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Comments (3)
plubber wrote:
Whats with S&P? They’re going ballistic on the downgrades. Itchy…

Aug 08, 2011 11:27am EDT  --  Report as abuse
Intriped wrote:
Great news, should have happened long ago.

Aug 08, 2011 11:39am EDT  --  Report as abuse
bobw111 wrote:
Definitely a late move by S&P. Fannie and Freddie should have been given much lower ratings long ago.

Looks like Frank & Dodd have lost their ability to mesmerize the financial industry with the congressional feces.

Aug 08, 2011 1:32pm EDT  --  Report as abuse
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