Moody's affirms Fannie Mae

Moody's Investors Service said it affirmed all ratings of the Fannie Mae, including its Aaa senior long-term debt, Prime-1 short-term debt, Aa2 subordinated debt, Ca preferred stock and E+ Bank financial strength ratings.

All ratings have a stable outlook.

The affirmation follows Fannie Mae's announcement of a $29.0 billion net loss for the third quarter of 2008, the agency said, adding that the company net loss was driven by a $21.4 billion valuation allowance established for its deferred tax asset, as well as increasing provision for loan losses and mark-to-market losses.

The deferred tax valuation allowance was largely a result of uncertainty regarding the company's future profitability, Moody's said.

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