Volatile capital flows, lower-than-expected growth in China and the eventual tightening of U.S. monetary policy are the major risks threatening sovereign credit ratings, the Moody's Investors Service warned on Wednesday.
Going into 2016, our credit outlook for global sovereigns is stable overall, but there is more scope for negative surprises than for positive ones," Alastair Wilson, managing director of global sovereign risk at Moody's, said in a report out Wednesday.
Last month, the International Monetary Fund (IMF) cut its 2016 outlook for global growth to 3.6 percent from 3.8 percent, which it forecast in July. The body warned that "downside" risks to the world economy had grown in recent months.
The proportion of Moody's-rated countries with a stable outlook has fallen slightly from a year ago (to 75 percent from almost 80 percent) and the share of negative outlooks has risen.
CNBC takes a closer look at some of the factors that could threaten the world economy next year.