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Home » Store » GSEs » Fitch: GSEs’ Outlook Linked to ‘Fiscal Cliff’

Fitch: GSEs’ Outlook Linked to ‘Fiscal Cliff’

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Fannie Mae and Freddie Mac have reduced their dependency on U.S. government support, but there may be restructuring issues within the budget talks to resolve the looming “fiscal cliff,” according to Fitch Ratings. Fitch this week affirmed its “AAA” rating for both Fannie and Freddie even as its outlook for the two GSEs remains “negative.” However, the rating agency warned that its outlook for Fannie and Freddie depends upon the economy and the ability of political leaders to come to an accord on taxes and government spending before year’s end.
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