Fannie Mae and Freddie Mac have "sophisticated" risk management operations that are supported by sound structures and technical expertise, according to a report by Moody's Investors Service.The Risk Management Assessment report on the government-sponsored enterprises is the first of a series to be published by the rating agency to increase the "transparency of its rating process," Moody's said. Brian Harris, the lead analyst for the GSEs at Moody's, said the rating agency believes they "maintain well-run risk management operations, with sound support systems and technical capabilities. While there are areas for improvement at both GSEs, on the whole Moody's holds a positive view of these GSEs' risk management approaches." Moody's said it will publish more risk management assessments of companies in various financial sectors beginning in 2005. Moody's can be found on the Web at http://www.moodys.com.

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