US tariff fickleness poses credit risk for debt issuers

Moody's Ratings Tuesday said the uncertainties around US tariffs have negative credit consequences for debt issuers across emerging markets, including companies, governments and banks.

- PRESS TRUST OF INDIA

"The on-again, off-again US tariffs and difficulty predicting US trade policy have negative credit consequences for debt issuers across emerging markets," Moody's said.

Besides, geopolitics is an additional stress for emerging markets, including the flare-up of tensions between India and Pakistan.

Exporters are most directly exposed to US tariff changes, but most debt issuers face indirect effects, Moody's said, adding tariffs will reach a much bigger and varied group of debt issuers indirectly through slowing economic growth and, for many, commodity price declines, currency depreciation and investor risk aversion.