Taiwan continues to enjoy investment grade Aa3 ratings and a stable outlook given strong export growth and improvements in the government's fiscal condition, Moody's Investors Service said in an annual report issued yesterday.
Entitled Taiwan: 2007 Credit Analysis, the report said the ratings were supported by the country's very strong external payments position, a relatively high income level and signs of improvement in the government's fiscal position.
It added that the domestic political challenges facing President Chen Shui-bian's (
"Export performance in 2006 rebounded from the cyclical downturn in the electronics market, and the maintenance of a sizable current account surplus and high level of international reserves seems assured," said Moody's vice president Thomas Byrne, author of the report.
Taiwan's sound economic growth has also lifted the nation's per-capita income to the same level as middle-income OECD countries, he said.
Recent government intervention to support troubled banks would likely remain limited in scope and not pose any significant contingent liability to the government's finances, he added.
"Taking into account mitigating factors, the government's debt ratios remain consistent with its Aa3 local currency rating," he said.
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