Emerging markets face some common risks this year in the form of slower global growth, trade policy uncertainty and political risks,
According to the credit rating agency, technological change and Environmental, Social and Governance (ESG) shifts offer longer-term challenges and opportunities for emerging market corporations.
It noted corporate performance over the coming year will depend on how the above trends shape the operating environment, as well as on firm level strategies to deal with evolving credit conditions.
"Global growth decelerated toward the end of 2018, and we expect global and emerging market growth to be slower over the coming year, although the pace of deceleration will vary across countries," Moody's stated.
"(…) Turkey and Argentina will remain in recessions. With the exception of Brazil and South Africa, most other large emerging markets will witness lower growth in 2019 than 2018. This will likely constrain revenue growth for many emerging-market companies," it added.
As the pace of economic expansion moderates, the global interest rate outlook has changed, it concluded.