Texhong's financial results for 2015 were better than we expected, with solid margin improvement and faster project execution. We believe Texhong's financials could still be better than our previous forecast even after consolidating its startup entity in Xinjiang. We are placing our 'BB-' long-term corporate credit rating on the China-based textile manufacturer and the 'BB-' long-term issue rating on its senior unsecured notes on CreditWatch with positive implications. We are also placing our 'cnBB+' long-term Greater China regional scale rating on Texhong and the notes on CreditWatch with positive implications. We aim to resolve the CreditWatch placement within the next three months, once we have assessed the impact of the company's rising exposure to Vietnam and the consolidation of its
