Credit conditions for emerging markets in 2019 will probably be more challenging as global growth slows, financial market volatility continues, interest rates rise and trade protectionism and geopolitical tensions heighten, says Moody’s Investors Service in a new report.

However, Moody’s has a broadly stable outlook on emerging markets, including in Asia. The outlook incorporates the various buffers that emerging market debt issuers have against these challenges, such as strong balance sheets, supportive policy and access to a growing domestic market.

“As global trade slows and financing conditions tighten in 2019, we expect median GDP growth in emerging economies in Asia Pacific to slow to 4.8%, following an expected 5.8% growth rate in 2018,” says Moody’s Managing Director Atsi Sheth.