S&P Global Ratings expects a stable credit environment for Asia-Pacific sectors amid solid AI demand and the reopening of the Strait of Hormuz, according to a Wednesday release.

A drop in headline oil prices provides some relief to the region, which is a net energy importer, and offers upside growth potential, S&P's Asia-Pacific head of credit research, Eunice Tan, said.

The region's issuers showed a net rating outlook bias of -2% as of May, improving from -3% in March, S&P said.

AI demand anchors the region's tech and upstream electronics producers, with resulting growth offering a buffer against energy shocks, the rating agency said.

However, second-order shocks could lead to a mixed recovery, with a slow turnaround in non-energy flows adding pressure on input costs and protracting disruptions for petrochemicals, agriculture, transportation, and manufacturing, Tan said.

A notable decline in AI-related optimism or heightened geopolitical tensions could also quickly hit financing conditions, S&P said.