Lingering fragilities in the sector are likely to be compounded by a prolonged period of subdued economic activity compared to pre-coronavirus levels, it added.
Moody's Investors Service on Tuesday said India will be among the large emerging market sovereigns to have highest debt burden by 2021.
The coronavirus pandemic-induced deterioration in growth and fiscal dynamics will leave most large emerging market sovereigns with higher debt burdens over the next few years, it said.
"We expect government debt in the large emerging market sovereigns to rise by almost 10 percentage points of GDP on average by the end of 2021 from 2019 levels, driven primarily by wider primary deficits, although some are likely to see higher interest payments contributing to higher debt," Moody's said.
"Debt burdens in Brazil,
First Published: Sep 01 2020 | 8:16 PM IST