According to the survey, investor concerns were particularly focused on south Asia, with 80% of respondents anticipating a further economic slowdown in India, followed by 76 per cent expecting the same in Indonesia.

Concerns over an escalating regional geo-political risk are overdone, as per the report, while reduction of quantitative easing by major central banks is seen as the main risk to APAC credit markets.

"Fears of quantative easing (QE) is definitely a factor weighing on the investors' minds. It is widely believed that as long as there is this stand-off in Washington the Fed will hold off from tapering," said Mark Konyn, CEO, Cathay Conning Asset Management in an interview with ET Now.

However, the Fed had made it very clear that any timetable to pull back from tapering is wholly dependent on the progress of the real economy.

Fitch believes the two main factors affecting the growth outlook for Emerging Asia including India are: tighter global monetary conditions as the Fed tapers quantitative easing, and downward pressure on non-fuel commodity prices from China's slowdown.

Countries experiencing the greatest pressure on their currencies and reserve levels are those seeing weakening current-account positions and persistent inflationary pressure. Fitch sees limited scope for policy slippage for either sovereign at the current rating levels of 'BBB-' with stable outlook.

Fitch believes that credit stresses will be contained in specific sectors. The