This International Finance Corporation (IFC) Research Note analyzes the cost of borrowing for firms in emerging and developing economies, changes in their debt structure, and indicators of indebtedness and profitability. It finds reasons for optimism on their resilience, while noting that vulnerabilities remain. In contrast to earlier periods of heightened macro volatility and Fed hiking cycles, emerging market corporate yields rose significantly but spreads over U.S. Treasuries remained stable. Moreover, there was a noticeable shift by emerging market firms toward local currency borrowing to eschew vulnerabilities from foreign currency denominated debt. As a result, interest coverage ratios for emerging market companies are still healthier than on the eve of the pandemic. Nevertheless, borrowing costs warrant monitoring because corporate debt levels remain high and, despite recent policy rate cuts in the United States and elsewhere, global real interest rates are projected well above pre-pandemic levels in the next few years.