TAIPEI (Taiwan News) — Fitch Ratings has reaffirmed Taiwan’s long-term sovereign credit rating at “AA” with a stable outlook, the Ministry of Finance said Wednesday.

The rating reflects Taiwan’s strong net external creditor position, prudent fiscal management, and competitive business environment, per CNA. Fitch also highlighted the country’s effective debt control and consistent adherence to its statutory debt ceiling.

According to the ministry, tax revenues exceeded expectations last year while expenditures remained slightly under budget. The result was a combined central and special budget surplus equivalent to 0.4% of GDP. Fitch projects another modest surplus this year, driven by continued strong tax collection.

The ratings agency forecasts that Taiwan’s debt-to-GDP ratio for bonds maturing in over one year will decline from 31% in 2024 to 27% by 2027, citing low fiscal deficits and solid economic growth. The government has used surpluses to fund targeted spending without significantly increasing public debt.

Fitch praised Taiwan’s commitment to maintaining its legal debt ceiling of 50% of GDP, calling it a key factor in the country’s medium-term fiscal stability. Budget surpluses are expected to remain a key tool for managing debt levels.

Despite the positive outlook, the ministry cautioned that Taiwan still faces external risks — including slowing global growth, rising protectionism, and geopolitical tensions. The government pledged to safeguard financial stability and continue supporting economic development.