U.S.-based Quiksilver Inc. recently announced that it has completed a debt for equity exchange with Rhone Capital. Following the debt for equity exchange announcement, we anticipate decreased debt levels and strengthened credit protection measures. We placed our 'B-' long term corporate credit rating and 'CCC' senior unsecured debt ratings on Quiksilver on CreditWatch with positive implications. On Aug. 10, 2010, Standard&Poor's Ratings Services placed its 'B-' corporate credit rating and other ratings on Quiksilver Inc. on CreditWatch with positive implications. Standard&Poor's could either raise or affirm the ratings when it resolves the CreditWatch listing. The CreditWatch placement follows Quiksilver's announcement that it has completed a debt for equity exchange of $140 million in outstanding principal of
