Businessman analyzing report

Global credit conditions are deteriorating and risks are on the rise in 2019 as the global economy slows, funding costs rise and liquidity tightens, New York-based rating agency Moody’s Investors Service said Tuesday.

“Furthermore, trade, political and geopolitical risks will escalate, as the U.S.-China relationship becomes tenser and as slower growth propels longer-running globalization and inequality debates into the political arena,” says Michael Taylor, managing director and chief credit officer at Moody’s, in a statement.

“Of all the risk factors, U.S. trade policy is the most potent, far-reaching source of global risk, and will have significant sector and regional impacts,” Taylor adds. “Global GDP growth will remain solid, but China’s slowdown is likely to be more pronounced.”