After Moody's Corporation downgraded the sovereign rating of the United States, the ratings of Fannie Mae (FNMA.US) and Freddie Mac (FMCC.US) were also downgraded.

Moody's Corporation downgraded the long-term senior unsecured debt ratings of Fannie Mae (FNMA.US) and Freddie Mac (FMCC.US) from Aaa to Aa1 on Monday, following the downgrade of the United States sovereign credit rating to the second-highest level by the rating agency the previous Friday. At the same time, the rating outlook for both institutions was changed from negative to stable. Earlier on Monday, Moody's Corporation also downgraded the credit ratings of five large U.S. banks, including JPMorgan Chase (JPM.US) and Wells Fargo & Company (WFC.US), after lowering the U.S. sovereign rating. Moody's Corporation stated that the adjustment in the ratings of Fannie Mae, Freddie Mac, and other Government-Sponsored Enterprises (GSEs) reflects the weakening ability of the U.S. government (Aa1 stable) to support these entities, despite maintaining a relatively high credit rating. All the downgraded long-term ratings still incorporate factors related to U.S. government support. Along with Fannie Mae and Freddie Mac, the Federal Home Loan Banks, the Federal Agricultural Mortgage Corporation, and the Federal Farm Credit Banks were also downgraded. Moody's Corporation mentioned that the short-term ratings of the Government-Sponsored Enterprises remain at Prime-1.