The cumulative step-down preferred stock ratings of Home Ownership Funding Corp. I and II have been downgraded from Aa2 to Ba2 by Moody's Investors Service. The outlook is developing. HOFC is a real estate investment trust that is 99% owned by Freddie Mac, which recently announced that HOFC will stop paying preferred dividends. "Moody's believes that the suspension of HOFC's preferred dividends may last several years," the rating agency said. "Moody's expects that HOFC will have sufficient resources to pay the cumulative dividends upon the re-institution of payments." Moody's can be found on the Web at http://www.moodys.com.
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