Freddie's Sub Debt, Pfd Stock Downgraded

Meanwhile, citing the Parseghian announcement, Fitch Ratings has downgraded Freddie Mac's subordinated debt and preferred stock ratings from AA to AA-minus, although the company's senior debt ratings were affirmed.Freddie Mac's long-term senior debt rating was affirmed at triple-A and its short-term debt rating was affirmed at F1-plus. The subordinated debt and preferred stock ratings remain on Rating Watch Negative, Fitch said. "The action on the subordinated debt and preferred stock follows Friday's late announcement of another significant change within senior management at Freddie Mac," Fitch said. "When the board's initial actions were taken, great emphasis was placed on the skills and experience the then-newly-named CEO, Greg Parseghian, possessed and the material contributions he has made in developing and building the risk management infrastructure that remains today. Fitch believes continuity in managing interest rate risk was and continues to be important." The rating agency can be found online at http://www.fitchratings.com.