The Viridian Credit Tracker utilizes 11 different bespoke credit ratios to evaluate four aspects of credit quality: Liquidity, Leverage, Profitability, and Size. We see significant distress indicators in this chart at year-end 2022. For example, in the Agricultural Technology sector (a non-plant touching business segment that is technically open to bank lending), we note that the bottom quartile of companies had debt/market caps of 4.53x, up from .47x last year. Levels over 3x have typically indicated financial distress, and we are more closely looking at these companies for potential liquidity issues. The sector has a median current ratio of 1.5x but only .08x on a free cash flow adjusted basis. This sector will likely be impacted by the belt-tightening plans of nearly every major MSO.