Standard & Poor's has lowered its equity ranking of Freddie Mac to two-STARS "Avoid" at $46.96 per share, citing concerns about federal investigations and questions about the candor of the government-sponsored enterprise."We believe the company has been less than forthright in giving investors adequate information regarding recent investigations," said Erik Eisenstein, an S&P equity analyst of mortgage companies, thrifts, and government-sponsored enterprises. "Only yesterday [June 11], the company disclosed that an SEC inquiry had been in effect since January. We are concerned about the magnitude of the investigation and its potential political fallout." The announcement came through S&P's MarketScope, the rating agency's market intelligence service. S&P had reiterated Freddie Mac's three-STARS "Hold" ranking (in effect since Jan. 27, when it was downgraded from four-STARS "Accumulate") the day after Freddie Mac announced the firing of David Glenn as president and chief operating officer. STARS stands for Stock Appreciation Ranking System. S&P can be found online at http://www.standardandpoors.com.
S&P Lowers Freddie Equity Ranking
Published June 13, 2003, 2:00 p.m. EDT
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