S&P: Fannie Mae off watch

Standard & Poor's said it removed its AA- risk-to-the-government, subordinated debt and preferred stock ratings on Fannie Mae from CreditWatch, where they were placed on Sept. 23, 2004.

The ratings are affirmed and the outlook is negative, S&P said, noting that the rating action reflects Fannie Mae's progress in its accounting restatement process and the build-up of a stronger capital position.

According to S&P, 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, the agency noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.