Fitch lifts Taiwan view to positive

Fitch Ratings said it revised the outlook on Taiwan to positive from stable.

The agency also said it affirmed Taiwan’s long-term foreign- and local-currency issuer default ratings at A+ and AA-, respectively.

The issue ratings on Taiwan’s senior unsecured local-currency bonds also were affirmed at AA-. The country ceiling was affirmed at AA and short-term foreign-currency issuer default rating at F1.

The country’s fiscal profile recently benefitted from implementation of a new government multi-year fiscal consolidation strategy targeting both revenue and expenditure measures, Fitch said.

The general government budget deficit fell to 0.8% of GDP in 2014 from 1.4% in 2013 and 2.4% in 2012, the agency said.

Fitch said it forecasts a general government deficit of 1% of GDP in 2015, supported by various tax measures introduced during the second half of 2014 and prudent expenditure management.

Taiwan’s robust external finances remain its core credit strength, the agency added.

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