S&P: Fannie Mae remains on watch

Standard & Poor's said its AA- ratings on Fannie Mae's subordinated debt, preferred stock and its risk-to-the-government rating remain on CreditWatch negative due to the ongoing process of restating its financial statements and reports for 2001 to the present and the pending release of the Office of Federal Housing Enterprise Oversight regulatory examination report.

Until these critical uncertainties are further clarified, the ratings will remain on CreditWatch negative, the agency said, adding that Fannie Mae's management team has indicated that the restated financial results will not be released until the second half of 2006.

The Fannie Mae board of director's internal review conducted by former U.S. Senator Warren Rudman and the law firm of Paul, Weiss, Rifkin, Wharton & Garrison LLP, highlighted the lack of governance and internal controls for financial reporting and accounting policy for key accounting standards that resulted in the restatement of financial reports, S&P added.

© 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.