S&P Global Ratings has upgraded Taiwan's sovereign credit rating to 'AA' from 'AA-' and changed its outlook to 'positive' from 'stable', citing strong growth prospects. The agency noted that Taiwan's effective response to COVID-19, robust net external asset position and competitive private sector enabled economic growth to accelerate in 2020 despite the global pandemic. The positive outlook reflects its view that Taiwan's economy will maintain robust growth over the medium term compared to other high-income economies, supported by strong external demand for Taiwan's electronics exports. Moody's credit rating for Taiwan was last set at Aa3 with positive outlook. Fitch's credit rating for Taiwan was last reported at AA- with stable outlook. In general, a credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the credit worthiness of Taiwan thus having a big impact on the country's borrowing costs. This page includes the government debt credit rating for Taiwan as reported by major credit rating agencies.