NEW YORK (Standard & Poor's) Sept. 25, 2007--Standard & Poor's Ratings
Services today low
ered its ratings on eight classes from Bear Stearns Mortgage
Funding Trust 2006-SL1 (see list).
The downgrades reflect the poor performance of the collateral pool.
Monthly net losses have consistently exceeded monthly excess interest cash
flows, resulting in the complete write-down of the overcollateralization (O/C)
for this deal. In addition, the entire principal balances of classes B-2, B-3,
and B-4, and approximately $39,093 of the principal balance of class B-1, have
been written down.
As of the September 2007 distribution period, total delinquencies were
15.54% and severe delinquencies were 9.34%. Although the transaction is 13
months seasoned, it has experienced approximately 9.28% in cumulative realized
losses to date. The outstanding pool factor is 64.63%.
Subordination, O/C, and excess interest cash flows provide credit support
for this transaction. The collateral consists of 30-year, fixed-rate,
closed-end second-lien mortgage loans secured by one- to four-family
residential properties.
RATINGS LOWERED
Bear Stearns Mortgage Funding Trust 2006-SL1
Rating
Class To From
M-2 A AA
M-3 BBB- A-
M-4 B+ BB+
M-5 CCC B
B-1 D CCC
B-2 D CCC
B-3 D CCC
B-4 D CCC
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