Bermuda-based financial guarantor Primus Guaranty said yesterday it expected minimal impact resulting from the decision of the US Government to seize control of the US mortgage giants, Fannie Mae and Freddie Mac.

Primus stated that that its exposure to the two companies, in the form of credit default swaps (CDS) and subordinated debt, totalled $215 million.

The company said that even if the actions relating to Fannie Mae and Freddie Mac are deemed to constitute credit events under Primus's CDS, Primus Financial's losses are expected to be minimal, if any.