New Delhi, April 16 -- Moody's Ratings on Wednesday said US tariffs will weaken credit conditions and raise defaults risks especially for low-rated and speculative grade corporates.

It said that an unpredictable US trade policy will lead to a deterioration in global credit conditions and macroeconomic impact will slow growth with a growing possibility of recession.

"Non-financial corporate sectors are most at risk from tariffs. Low-rated, speculative-grade companies will be affected by their reliance on debt markets. Risks for most banks and sovereigns are indirect through economic weakness," Moody's Ratings said in a report on US tariffs.

On April 9, the US administration authorised a 90-day pause on the implementation of most recipro...