Moody's Ratings said in its outlook report that the credit environment is expected to deteriorate in 2027 due to higher financing costs and pressure from energy prices, highly leveraged companies and interest-rate sensitive industries will be under pressure. A team of credit strategists led by Ning Luo said that many issuers can bear higher debt costs, but sovereign governments with high deficits and large share of short-term debt, and highly leveraged enterprises will face maximum pressure. The private equity and credit sector has adopted a large number of measures to preserve liquidity, which indicates that some players in this sector are already under pressure. The report added that the growth rate of AI-related investments may slow down, related projects will be scrutinized more strictly, and investors will focus on evaluating whether project revenue can cover costs and support debt repayment. The fragmentation of business models will be further highlighted: some companies will benefit from a recovery in demand and increased productivity, while others will increase competition and weaken pricing capabilities. At the same time, Moody's believes government policies will be an increasingly important driver of credit risk. Large economies will continue to interfere in the market through regulation, tariffs, export controls, strategic investments, etc. Executive orders can quickly introduce or abolish relevant tools, and policy shifts will be frequent, which in turn will affect trade, capital allocation, and market competition patterns.

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