Fitch Upgrade of “Taiwan, China” Jolts Traders, Irks Taipei

Fitch Ratings referred to Taiwan as part of China in the title of a rating announcement for the first time since at least 2003, triggering confusion among some traders and a reprimand from the Taipei government.

Fitch’s statement began with the phrase, “Fitch improves Taiwan, China to ‘AA’; Outlook Stable ”, which some observers initially interpreted to mean a double upgrade of Taiwan and mainland China. Previous Fitch’s statements only used “Taiwan”. The same is true of recent statements by Moody’s Investors Service and S&P Global Ratings.