OVERVIEW Total delinquencies remain elevated and the reserve fund continues to be drawn. A fall in house prices since closing has increased our weighted-average foreclosure frequency and weighted-average loss severity forecasts. These increases have led to failures in our cash flow scenarios at the original ratings. We have therefore lowered our ratings on all classes of notes for credit reasons. The class A1 notes remain on CreditWatch negative due to our counterparty criteria update. Ludgate Funding's series 2008-W1 is a U.K. "buy-to-let" RMBS transaction securitizing loans originated by Wave Lending. LONDON (Standard&Poor's) Jan. 28, 2011--Standard&Poor's Ratings Services today lowered and kept on CreditWatch negative its credit rating on the class A1 notes in Ludgate Funding PLC's
