OVERVIEW Cumulative principal losses continue to increase at a rapid rate, in our opinion, leading to six consecutive reserve fund draws. We have thus placed all classes on Ludgate Funding's notes on CreditWatch negative. Ludgate Funding series 2008-W1 is a U.K. "buy-to-let" RMBS transaction securitizing loans originated by Wave Lending Ltd. LONDON (Standard&Poor's) June 21, 2010--Standard&Poor's Ratings Services today placed its credit ratings on CreditWatch negative on Ludgate Funding PLC' s mortgage-backed floating-rate notes series 2008-W1. The rating on the MERCs is unaffected (see list below). Today's rating action follows our initial credit analysis of updated loan level information. In our opinion, cumulative principal losses (as a percentage of the initial balance) are high (1.62%) for
