Freddie Mac 2015 Annual Report Download - page 195

Risk Factors Liquidity Risks
Freddie Mac 2015 Form 10-K 193
Any downgrade in the credit ratings of the U.S. government would likely be followed by a
downgrade in our credit ratings. A downgrade in the credit ratings of our debt could adversely
affect our liquidity and other aspects of our business.
Our credit ratings are important to our liquidity. We currently receive ratings for our unsecured debt from
three nationally recognized statistical rating organizations (S&P, Moody’s, and Fitch). These ratings are
primarily based on the support we receive from Treasury, and therefore are affected by changes in the
credit ratings of the U.S. government. Any downgrade in the credit ratings of the U.S. government would
be expected to be followed or accompanied by a downgrade in our credit ratings. In addition to a
downgrade in the credit ratings of or outlook on the U.S. government, a number of other events could
adversely affect our debt credit ratings, including actions by governmental entities, changes in
government support for us, future GAAP losses, and additional draws under the Purchase Agreement.
Any such downgrades could lead to major disruptions in the mortgage and financial markets and to our
business due to lower liquidity, higher borrowing costs, lower asset values, and higher credit losses, and
could cause us to experience net losses and net worth deficits. A downgrade in our credit ratings could
require us to post additional collateral to certain of our derivative counterparties.
For more information, see “MD&A - Liquidity and Capital Resources - Liquidity Profile - Credit Ratings.”