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WASHINGTON — A deep recession could force mortgage-finance titans Fannie Mae and Freddie Mac to require a federal bailout large enough to hurt the U.S. government’s top-grade credit rating, Standard & Poor’s warned Monday.
A lower credit rating would mean higher borrowing costs for the U.S. government and could lead to a flight from Treasury securities, which investors consider to be virtually risk-free.
Still, S&P analysts see a bailout of Fannie and Freddie as unlikely.
