Credit conditions in EMs show some improvement thanks to better financing conditions, the expectation of a global economic recovery in the second half of 2020, and the stabilization of--in some cases, increasing--commodity prices. Economic activity is also slowly picking up in many EM economies, which brings relief to some sectors. There's still a long way to go for recovery and the deep economic shock has had a severe impact in several sectors of the economy, while consequences of the pandemic will reflect in higher debt levels for most issuers and magnified risks. Higher leverage will probably limit investment levels going forward.