Moody's Investors Service Wednesday said that the credit quality of Moody's-rated sovereigns, financial institutions and corporates across Asia Pacific will be stable in 2015, due to a modest recovery in external demand, especially from the US, supportive global monetary conditions, and the region's fundamental strengths and defenses against external shocks.

The global credit rating agency released its Asia Pacific Credit Outlook report today.

"Governments, financial institutions and the vast majority of corporates that we rate will be resilient if, as we expect, global liquidity conditions become less accommodative next year, and China's economic rebalancing continues," says Michael Taylor, a Moody's Managing Director and Chief Credit Officer for Asia Pacific, in a press release.

Moody's expects that the real GDP growth of China in 2015 would be 6.5 percent to 7.5 percent.

Rahul Ghosh, Moody's Vice President and Senior Research Analyst, said:" There will only be moderation and not a major disruption to capital inflows to Asia Pacific in 2015, with offshore borrowing costs likely to remain well below historical norms."

The report noted that while persistent weakness in global commodity prices will continue to present serious credit challenges to raw material producers in Asia Pacific, the region's status as a net oil importer, and the opportunity for governments to pare back subsidies, means that falling crude prices will be credit positive for much of the region.

Moody's confirmed that 19 of the 22 sovereigns rated by Moody's in Asia Pacific carry stable outlooks; indicating Moody's expectation of steady credit conditions in 2015.

Meanwhile, the region's banking system is also broadly stable, with 10 stable, one positive, and five negative outlooks. As for corporates and project and infrastructure finance issuers, 82 percent carry stable outlooks, noted the report.