We believe Texhong's good growth prospects and improved profit margin should more than offset the effect of consolidating its Xinjiang startup entity where it has now adopted a more prudent capacity expansion plan. We expect the company to maintain sufficient liquidity to meet its financial obligations, even in a hypothetical sovereign stress scenario for Vietnam. We are raising our long-term corporate credit rating on Texhong to 'BB' from 'BB-' and our long-term Greater China regional scale rating on the company to 'cnBBB-' from 'cnBB+'. We are also raising our long-term issue rating on Texhong's senior unsecured notes to 'BB' from 'BB-' and our long-term Greater China regional scale rating on the notes to 'cnBBB-' from 'cnBB+'. We are removing all
