S&P Keeps Freddie Equity Ranking at 'Hold'

Standard & Poor's has reiterated its three-STARS "Hold" equity ranking of Freddie Mac at $52 per share.S&P said the stock has been ranked a "Hold" since Jan. 27, 2003, when it was downgraded from four-STARS "Accumulate." The announcement came through S&P's MarketScope, the rating agency's real-time market intelligence service. "Shares are at a historically low price-to-earnings multiple, but with a low degree of confidence in earnings-per-share estimates in light of a pending restatement, we would hold the shares," says Erik Eisenstein, an S&P equity analyst of mortgage companies, thrifts, and government-sponsored enterprises. S&P's Stock Appreciation Ranking System is based on the opinions of S&P equity analysts on the price appreciation potential of 1,200 U.S. stocks for the next six to 12 months. Rankings range from five-STARS (Strong Buy) to one-STARS (Sell).