Fitch: Emerging Market Issuers May Face Financing Challenges if Fed Turns More Hawkish

According to Jin10, Fitch Ratings said emerging-market issuers showed resilience in the third quarter but could face challenges if Federal Reserve policy turns more hawkish and developed-market sovereign bond yields rise. Fitch said its baseline expectation is for financing conditions in most emerging markets to ease in 2027. As global inflation pressures subside, central banks will face less policy pressure, but Fitch said its forecasts remain subject to significant risks. The agency's latest forecast puts growth in emerging-market economies excluding China at 3.3% in 2027, below the upwardly revised 3.6% for 2026.