Kroll Bond Ratings Agency and Fitch plan to assign investment grade ratings to the M1 and M2 notes of Freddie Mac's latest risk sharing transaction.

KBRA expects to rate the $966 million Structured Agency Credit Risk deal's M1 notes A and the M2 notes of BBB. Fitch has assigned preliminary Asf and BBB-sf ratings to the deal, STACR 2014-DN2. (BBB- is generally considered the lowest investment-grade rating.) The structure also will issue M3 notes that the ratings agencies will leave unrated.

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