Asia-Pacific's emerging market nonbank financial institutions (NBFIs) should observe controlled refinancing risk this year, Fitch Ratings said.

Most issuers' near-term funding profiles continue to be stable amid ample domestic liquidity, solid bank funding access, and predominantly solid shareholder or government support, Fitch said.

The rating agency's view comes even as the entities face modestly higher refinancing needs and unstable offshore funding conditions due to the Iran conflict.

The sector's greater dependence on short-term funding compared to other regions reflects specific business models rather than weaker refinancing ability, according to Fitch.

Offshore US dollar issuance could still provide gains in 2026 amid tighter market access due to high funding costs, volatile yields, and geopolitical risks, Fitch said.

Greater-than-expected tightening in domestic liquidity, resurgent upward pressure on US dollar yields, or expanding credit spreads serve as risks for the sector, the rating agency said.