Fitch Ratings affirmed Taiwan's long-term foreign-currency issuer default rating (IDR) at AA with a stable outlook, according to a Tuesday release by the ratings agency.
The rating reflects the country's large net external creditor position, responsible fiscal management, and competitive business environment, balanced by strained relations with the Chinese Mainland, and the economy's vulnerability to external shocks among other factors.
The rating is driven by the agency's upgrade of its 2026 GDP growth forecast for the self-governing island to 9.4%, a strong external balance sheet, and a moderation in growth to 4.8% in 2027 and 4.5% in 2028.