The outlook for global sovereign ratings is negative possibly until 2018 amid expectations for low economic growth and high public-sector debt, Moody's Investors Service said Monday.
Around 26 percent, or 35 out of 134 sovereigns, have a negative outlook as of Monday, Moody's said in a note, adding that it was the largest proportion since late 2012 during the European debt crisis.
Only 12 sovereigns currently have a positive outlook, it said.
"Since the start of 2016, a third of rated sovereigns have experienced a decline in their economic strength, and two-fifths in their fiscal strength," it said.
"The sources of shock varied, but for many emerging markets it arose from the oil/commodities price shock, with the impact concentrated among commodities exporters in the Gulf, Sub-Saharan Africa and Central Asia."
Limited prospects for growth were set to continue pressuring the outlook.
"One of the key credit constraints for most rated sovereigns is the persistently low growth environment," said Alastair Wilson, Moody's managing director for sovereign risk, in a statement on Monday.
"Monetary policy's ability to support growth in advanced economies is diminishing, and in many emerging markets it is constrained by above-target inflation and exchange-rate pressures. So we are seeing a gradual but broad-based shift in policy towards loosening fiscal policy in order to lift growth."