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Hello. I looked today nurgle spells section in CD book, and found this spell (=.
... All enemy models in base contact with the caster reduce their WS,S,T,I,A to 1.
How it work vs rank'n'file troops\units? I mean normally all attacks in excess of ones that are in BtB contact - come further to unit (normally all models in units have same stats). But this spell heavily weaken few ones in BtB and don't do anything to ones in back ranks. How it work?
1) I roll attacks for models in BtB, according to their stats. Then any excess wounds i roll vs other models in unit, according to their unchanged stats.
2) I just roll attacks according modified stats (ie 1.1.1.1), and all excess still apply to unit as well? (this automatically lower stats of all other models in unit too)

#2 is the correct option as models from the back ranks move forward to fill in the gaps that were left by those in the front ranks. This means as soon as they move up to where the Herald is their stats are reduced to 1.

Indeed. The abilities of models in the rear ranks never come into question anyways.

unless you're using spears or pikes