Fitch Ratings referred to Taiwan as being part of China in the headline of a ratings announcement for the first time since at least 2003, triggering confusion among some traders and a rebuke from the government in Taipei.
Fitch’s statement began with the phrase "Fitch Upgrades Taiwan, China to ‘AA’; Outlook Stable,” which some observers initially read as meaning a dual upgrade of both Taiwan and mainland China. Previous statements from Fitch used only "Taiwan.” So too have recent statements from Moody’s Investors Service and S&P Global Ratings.
While Fitch’s wording change didn’t have a discernible impact on market prices in mainland China, it did lead to some double takes by traders. It also elicited a response from Taiwan’s Ministry of Finance, which said in a statement on Friday that it regretted Fitch’s decision.