Standard & Poor's expects the U.S. Treasury's announcement that Fannie Mae and Freddie Mac had been placed in conservatorship by the Federal Housing Finance Agency, and S&P's resulting rating actions on these entities  to have a minimal rating impact on U.S. and European synthetic CDO transactions, the rating agency said this afternoon.

According to the International Swaps and Derivatives Association (ISDA), the U.S. Treasury's announcement on Sept. 7 that both GSEs have been placed in conservatorship by their regulator has triggered a bankruptcy credit event, as defined in section 4.2(f) of both the 1999 and 2003 ISDA Credit Derivative Definitions.

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