Moody’s Downgrades Fannie’s Rating

Moody’s Investors Service has downgraded the financial strength rating of Fannie Mae from "A-" to "B+" with a stable outlook.At the same time, Moody’s affirmed Fannie Mae’s "Aaa" senior unsecured debt rating with a stable outlook and its "Prime-1" rating for short term debt. The bank financial strength rating had been under review for downgrade since Sept. 28 of last year, following a report by the Office of Federal Housing Enterprise Oversight. Fannie Mae’s subordinated debt and preferred stock ratings, at "Aa2" and "Aa3," remain on review for possible downgrade. The rating agency’s website is http://www.moodys.com.