Earlier today I wrote this letter regarding the Change in U.S. Credit Rating.

Just as an update – information changing a lot today:

-- S&P has officially downgraded the long term rating of all agency bonds and MBS (FNMA, FHLMC, FHLB, FFCB)

-- Short term rating remain unchanged on all Treasury and Agency debt at SP-1+, the highest rating.

-- Moody’s just reaffirmed its AAA rating on all US Treasury bonds.  They will not, at least for now, follow S&P’s lead.  US Treasury bonds will hold a split rating of AAA/ AA+ (Moody’s / S&P)

Ryan Craft, CFA

Senior Investment Analyst