40 minutes ago NEW YORK (Reuters) - Standard & Poor's and Fitch Ratings on Sunday cut the ratings on preferred stock of troubled housing finance companies Fannie Mae (FNM.N) and Freddie Mac (FRE.N) to junk status after dividends were eliminated in a takeover by the U.S. government.S&P boosted its outlook on their "BBB-plus" subordinated debt ratings to positive from negative amid signs interest payments would not be affected. Fitch is reviewing its "AA-minus" rating on the subordinated debt.
The Treasury is taking an equity stake in the government-sponsored enterprises to shore up their financial stability, and placing them under conservatorship to manage their business of providing money to the U.S. housing market.
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