Taiwan's debt rating not hurt by row

Taiwan's debt rating won't be harmed by the recent flare-up in relations between the nation and China, Standard & Poor's Ratings Services said.

President Chen Shui-bian's (陳水扁) controversial plan to hold a referendum calling on China to remove missiles it has aimed at the island "needs to be seen in the context of campaigning for the March 2004 presidential election," Ping Chew (周彬), director of S&P's Asia-Pacific sovereign ratings, said in a statement.

Taiwan's AA- and A-1+ ratings were reaffirmed by the ratings company and the outlook for the island's debt remained stable.

"The every-increasing investment by Taiwan's business community in China and growing trade links should keep the govern-ment's actions in check," S&P said.

"The desire by both the US and China to maintain the status quo should limit the risks of military escalation," S&P said.