S&P Global Ratings yesterday reaffirmed Taiwan’s sovereign credit ratings, maintaining its “AA+” long-term and “A-1+” short-term ratings with a stable outlook.
Taiwan’s “robust net external asset position, sound fiscal settings and monetary flexibility” continue to support its creditworthiness despite mounting economic headwinds from a weakening global trade environment, S&P said in a statement.
While geopolitical tensions remain a source of pressure on the nation’s ratings, "they are unlikely to derail long-term growth in its highly competitive manufacturing sector," the agency said.
Photo: Cheng I-hwa, AFP
In addition, Taiwan’s advantages, such as its leading position in advanced chip manufacturing, sound fiscal position and strong net external assets, provide it with sufficient buffers to mitigate the impact of US tariffs on the economy, it said.
The agency’s latest assessment comes amid renewed concerns over global trade tensions, as US President Donald Trump’s tariff policy raises the risk of a broader trade war among major economies and casts a cloud on the prospects of global economic growth.
Economists said that Taiwan’s solid current account surplus and ample foreign exchange reserves, as well as its technology prowess and the central bank’s monetary flexibility, have prevented the nation from the negative impacts of capital outflows and external shocks.
S&P praised the central bank’s sound monetary management in ensuring ample liquidity in the domestic financial system and maintaining inflation at one of the lowest levels in Asia.
The agency also highlighted the relatively flexible exchange rate of the New Taiwan dollar and the smooth functioning of foreign exchange markets under the central bank’s stewardship, both of which help cushion economic and financial disturbances, the agency said.
As of the end of last month, Taiwan’s foreign exchange reserves stood at US$578.02 billion, up US$438 million from the previous month, while its current account surplus reached US$34.40 billion in the fourth quarter of last year, the central bank’s latest statistics showed.
S&P has maintained its “AA+” long-term and “A-1+” short-term sovereign credit ratings for Taiwan since 2022.
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Chizuko Kimura has become the first female sushi chef in the world to win a Michelin star, fulfilling a promise she made to her dying husband to continue his legacy. The 54-year-old Japanese chef regained the Michelin star her late husband, Shunei Kimura, won three years ago for their Sushi Shunei restaurant in Paris. For Shunei Kimura, the star was a dream come true. However, the joy was short-lived. He died from cancer just three months later in June 2022. He was 65. The following year, the restaurant in the heart of Montmartre lost its star rating. Chizuko Kimura insisted that the new star is still down
While China’s leaders use their economic and political might to fight US President Donald Trump’s trade war “to the end,” its army of social media soldiers are embarking on a more humorous campaign online. Trump’s tariff blitz has seen Washington and Beijing impose eye-watering duties on imports from the other, fanning a standoff between the economic superpowers that has sparked global recession fears and sent markets into a tailspin. Trump says his policy is a response to years of being “ripped off” by other countries and aims to bring manufacturing to the US, forcing companies to employ US workers. However, China’s online warriors
RSS