Fitch Rates Freddie Mac's $1.1B Non-Cumulative Perpetual Preferred Stock 'AA-'

Business Wire, Jan 11, 2007

CHICAGO -- Fitch Ratings has assigned an 'AA-' rating to preferred stock issued by Freddie Mac (rated 'AAA'/F1 ' by Fitch). Proceeds will be used to redeem all shares currently outstanding of its 6.14% non-cumulative preferred stock, issued in June 1997, and replace capital in connection with the company's previously completed repurchases of outstanding shares of common stock. The preferred stock is perpetual with an optional redemption on or after Dec. 31, 2011.

The non-cumulative nature and possible regulatory restrictions on the company's ability to redeem the issue results in equity credit assignment of 100% or Equity Class E.

Fitch rates the following new issue:

Freddie Mac

--$1.1 billion preferred securities 'AA-'.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.