Debt Issuers Brace for Impact of Lower US Credit Rating


Mon, 2011-08-08 07:24 — Mortgage News Ticker

... A number of entities that are key players in the U.S. financial system -- including mortgage finance companies Fannie Mae and Freddie Mac, and securities clearinghouses like the Options Clearing Corp Depository Trust Co -- are likely to be downgraded by Standard & Poor's on Monday.

For Fannie Mae and Freddie Mac, losing their triple-A rating could lift borrowing costs, potentially making mortgages more expensive for consumers and adding to stress in the already unstable U.S. housing market. ...

... A downgrade of Fannie Mae and Freddie Mac would affect billions of dollars of debt issued by public housing authorities secured by federally guaranteed mortgages. ...
Please read the full article on Reuters

Source(s): ... dit-rating ... ews-ticker ... W720110807