New Delhi, Nov. 12 -- Emerging market (EM) governments are expected to stabilise debt levels and contain borrowing costs in 2027 through fiscal consolidation and increased reliance on domestic currency funding, despite continued pressure from high interest rates, according to Moody's Ratings.

In its global emerging markets outlook, the rating agency said the median overall cost of debt for emerging market governments is likely to remain stable in 2027, as efforts to reduce debt offset higher refinancing costs.

"The median overall cost of debt for EM governments has been flat since 2024. We expect that median to remain stable in 2027, as debt reduction offsets the impact of higher refinancing costs," the report said.

Moody's noted that ...