Fannie Mae Connecticut Avenue Securities Receive NAIC Designations for the 2018 Filing Year

Matthew Classick
202-752-3662

WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) announced today that its Connecticut Avenue Securities^® (CAS) have received designations from the National Association of Insurance Commissioners (NAIC). For the first time, Fannie Mae received NAIC designations on all Exchangeable Notes and certain Related Combinable and Recombinable Notes (RCR Notes). All M-1 bonds that were reviewed received an NAIC 1 designation. Six M-2 bonds were upgraded to an NAIC 1 designation and four M-2 bonds were upgraded to an NAIC 2 designation.

The following CAS bonds issued in 2018 received an NAIC Designation for the first time in the 2018 filing year. NAIC designations for CAS 2018-C06 are expected to be available later this month.

M1 Classes

M2 Classes

The following CAS bonds received NAIC Designation upgrades in the 2018 filing year.

*Note: All NAIC 1 Designations were upgraded from an NAIC 2 Designation. The NAIC 2 Designation was upgraded from an NAIC 3 or 4 Designation.

To see all NAIC Designations for the 2018 filing year, please view the NAIC Designations table on our website.

The NAIC’s Structured Securities Group (SSG) describes its Designations on its webpage. An NAIC 1 designation is assigned to obligations exhibiting the highest quality and should be eligible for the most favorable treatment provided under the NAIC Financial Conditions Framework, while an NAIC 2 designation is assigned to obligations of high quality and should be eligible for relatively favorable treatment under the NAIC Financial Conditions Framework.¹

The National Association of Insurance Commissioners 2018 Mortgage Reference Securities Report is not a substitute for or functional equivalent of the credit ratings of rating agencies and is not produced to permit investors to compare the likelihood of default or of full and timely payment between one or more securities.

About Connecticut Avenue Securities
The amount of periodic principal and ultimate principal paid by The amount of periodic principal and ultimate principal paid on CAS notes is determined by the performance of a large and diverse reference pool. For more information on individual CAS transactions and Fannie Mae's approach to credit risk transfer, visit our credit risk sharing website.

¹ The NAIC's SSG is responsible for the day-to-day credit quality assessment and valuation of securities owned by state regulated insurance companies. The Securities Valuation Office conducts credit analysis on these securities for the purpose of assigning an NAIC designation and/or unit price.