Expected soft landing of advanced economies will continue supporting credit conditions in emerging markets (EMs), risks are receding to a certain degree, but the long-term outlook remains challenging. Our baseline assumptions point to sustained economic growth of both advanced economies and EMs, albeit diverging paths for the latter. Continued disinflationary trajectory and expected monetary easing should continue improving financing conditions, stabilizing credit conditions. Nevertheless, high borrowing costs will continue pressuring lower-rated issuers.