New Delhi, Nov. 12 -- Global credit conditions are expected to weaken in 2027 as higher borrowing costs and elevated energy prices put pressure on companies and governments, particularly those with high debt and significant refinancing requirements, according to a report by Moody's Ratings.

The report said that while major economies are expected to continue expanding, the combination of rising financing costs, energy expenses and slower growth in artificial intelligence (AI) investment could create pockets of financial stress across sectors.

"Credit conditions will weaken going into 2027," Moody's said, adding that the impact would vary depending on borrowers' debt levels, cash flows and exposure to refinancing risks.

The pressure is e...