Moody’s cuts Fannie, Freddie preferred stock ratings

SAN FRANCISCO (MarketWatch) — Moody’s Investors Service on Friday downgraded the preferred stock ratings and bank financial strength ratings of Fannie Mae and Freddie Mac , but affirmed their Aaa debt ratings. Moody’s cut the firms’ preferred stock ratings to Baa3 from A1 and their bank financial strength ratings to D+ from B-. The ratings remain on review for possible further downgrade. Moody’s said the preferred stock rating cut was from a greater risk of dividend omission on the preferred stock, and the bank financial strength rating cut was because of the firms’ constricted flexibility to manage potential volatility in their mortgage risk exposures.
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Original post by Forextvblog

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