We have lowered Texhong's financial risk profile to "aggressive" following much weaker results in 2011 than we expected, which led the company to breach our downgrade trigger. We believe the business risk profile of the China-based textile company has deteriorated to "weak", partly due to increasing volatility in cotton prices. We are therefore lowering the corporate credit rating and issue rating to 'BB-' from 'BB'. The negative outlook reflects our view that Texhong's credit protection measures are likely to remain weak in 2012 and full visibility over a recovery is limited. On March 22, 2012, Standard&Poor's Ratings Services lowered its long-term corporate credit rating on Texhong Textile Group Ltd. to 'BB-' from 'BB'. The outlook is negative. At
