Credit conditions in the second half of 2020 will remain very difficult. While signs of an economic recovery in China and some developed countries in Asia-Pacific have appeared, some emerging markets (e.g. India) are still struggling with a large and rising number of COVID-19 cases. Thanks mainly to government and regulatory actions, financing conditions have eased compared with that in late Q1 to early Q2. However, highly leveraged borrowers may still face challenges.