S&P cuts Fannie and Freddie credit rating Following its downgrade of U.S. debt, Standard and Poor's has now dowgraded mortgage giants Fannie Mae and Freddie Mac, because of "their direct reliance on the U.S. government." Here's the agency's press release explaining their actions: Ratings On Select GREs And FDIC- And NCUA-Guaranteed Debt Lowered After Sovereign Downgrade On Aug. 5, 2011, Standard & Poor's lowered its long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA'. As a result, we have also lowered the long-term issuer credit ratings and related issue ratings on select government-related entities (GREs) to 'AA+' from 'AAA'. The issuer credit ratings of these financial institutions and their relevant debt issues are removed from CreditWatch, where they were placed July 15, 2011. The outlooks for all 12 FHLBs, and the issue level ratings for Fannie Mae, Freddie Mac, the FHLB System, and the Farm Credit System are negative.