Highly susceptible to volatile cotton prices Narrow product suite Competitive and fragmented industry Good niche market position in core-spurn yarns Stable cash flows Experienced and proactive management team The rating on Texhong Textile Group Ltd. reflects the China-based textile company's vulnerability to volatile cotton prices and its narrow product suite. The rating also reflects the competitive and fragmented nature of the textile industry in China. Texhong's good niche market position in core-spun yarns, stable cash flows, and a proactive and flexible management team temper these weaknesses. The company's steady growth, which its expansion in Vietnam and above-average operating efficiency underpin, is an additional supporting factor. In our opinion, Texhong's "aggressive" financial risk profile, as our criteria define the term, will
