S&P Downgrades Fannie, Freddie

San Diego Union-Tribune -- Government mortgage giants Fannie Mae and Freddie Mac on Monday were downgraded by Standard and Poor's, the same agency that dropped the U.S. government's credit rating.

... Mark Riedy, executive director of University of San Diego’s real estate center, called the downgrade "more symbolic than real in terms of impact" on the entities and housing market.

"This sort of is the second shoe to drop after the federal government was downgraded," said Riedy, who was president of Fannie Mae in 1985 and part of 1986. "(Fannie and Freddie) have the full faith and credit of the U.S. government, so if the U.S. government is AA+, then so are any of its entities." (Full Story)

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