The fallout continues.

NEW YORK (CNNMoney) — Credit rating agency Standard and Poor’s on Monday downgraded the debt of mortgage finance giants Fannie Mae and Freddie Mac.

The downgrades to AA+ are part of the continued fallout from the agency’s decision to drop U.S. sovereign debt to AA+, an unprecedented move that rattled investors and sparked concern over the long-term impact of the action.

It was widely expected that S&P’s downgrade of U.S. debt would roll downhill to other entities that are closely linked to the federal government.

Fannie and Freddie, which were taken over by the government in 2008, fuel home sales by purchasing mortgages from banks.

“The downgrades of Fannie Mae and Freddie Mac reflect their direct reliance on the U.S. government,” S&P said in a statement.