Fitch Downgrades Fannie Mae and Freddie Mac One Notch to AA+
- Downgrade follows Fitch’s earlier cut to US sovereign rating
- Fannie and Freddie rely on implicit government support
The building that houses the Fannie Mae headquarters in Washington, D.C.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Fitch Ratings downgraded the credit scores of Fannie Mae and Freddie Mac to AA+ from AAA, a day after it cut the US sovereign credit rating.
The downgrades of the two government-sponsored enterprises are consistent with its downgrade of US government debt, Fitch said in a press release on Wednesday. The move was “not being driven by fundamental credit, capital or liquidity deterioration at the firms,” it said.