OVERVIEW There has been an interest shortfall on the class E notes, primarily driven by the unhedged interest rate dislocation between BBR and LIBOR in this transaction. We have lowered our rating on the class E notes to 'D' from 'CCC-'. Ludgate Funding series 2006-FF1 is a U.K. nonconforming RMBS transaction with loans originated by Wave Lending (formerly Freedom Funding). LONDON (Standard&Poor's) Sept. 3, 2009--Standard&Poor's Ratings Services today lowered to 'D' its credit rating on the class E notes series 2006-FF1 issued by Ludgate Funding PLC. All other notes in this transaction are unaffected. We rate the class E notes to timely payment of interest and their downgrade is due to the £23,679 missed interest payment
