LONDON- Rising interest rates will nudge down world bond issuance by around 2% this year, credit rating firm S&P Global has forcecast, although for corporates it is likely to be between 5% and 15% lower.

Global bond issuance, not including government borrowing, hit $9 trillion last year. But this year has seen a sharp jump in borrowing rates on bets the Federal Reserve will hike U.S. interest rates as many as five times this year.

"We expect global bond issuance to contract 2% in 2022--consistent with a return to pre-pandemic economic activity, though risks weigh to the downside," S&P said in a new report published on Monday.

"The main risk to our forecast is whether the Fed responds too aggressively in fighting inflation, in turn resulting in interest rate spikes, a market freeze, or declining economic activity and earnings."

It added that other uncertainties included global elections, pandemic developments and geopolitical risks.

It forecast non-financial firms' bond issuance would fall 5%-15% having finished 2021 at just shy of $3 trillion, while issuance by banks and financial firms would see flat to modest growth after surging 16% to a record $3.07 trillion last year.

(Reporting by Marc Jones; editing by Julien Ponthus) ((marc.jones@thomsonreuters.com; +44 (0)20 7513 4042; Reuters Messaging: marc.jones.thomsonreuters.com@reuters.net Twitter @marcjonesrtrs))