RAM Holdings Ltd. (Pink Sheets:RAMR) responded today to Moody's Investors Service (Moody's) ratings action. Moody's downgraded to Ba3, from Baa3, the insurance financial strength rating of RAM Reinsurance Company Ltd. (RAM Re). In the same rating action, Moody's also downgraded the rating of the preference shares of RAM Holdings Ltd. to C from B2. Moody's also announced that it will withdraw the insurance financial strength rating of RAM Re and the rating on the preference shares of RAM Holdings Ltd.

As previously announced, RAM Re had requested in March that Moody's withdraw its insurance financial strength rating of RAM Re and therefore the above actions were not unexpected. However, RAM Re wishes to comment on a statement in Moody's press release that Moody's believes that, if RAM Re's remaining customers were to exercise their rights to recapture their insured portfolios from RAM Re, RAM Re's remaining financial resources would be insufficient to repay all outstanding debt and preferred stock. If RAM Re's remaining customers were to recapture their insured portfolios at current ceded loss and unearned premium reserves in accordance with contractual terms, RAM Re's financial resources would be sufficient to repay all outstanding debt and preferred stock. RAM Re believes that Moody's statement assumes that loss reserves ceded by RAM Re's customers increase substantially from current ceded loss reserves.