5. As the Head of Credit of PQRZ Bank, you have just read a research report that provides a dismal outlook about the macroenvironment and warns about a possible recession. What would be your future outlook on the profitability and liquidity ratios of your customers in the credit portfolio? Based on the historical financial statements, your team has classified the credit portfolio (i.e. the customers) into the following categories:

Customers with very high net debt/EBITDA.

Customers displaying very high operating leverage, but low financial leverage.

Customers exhibiting both high operating leverage and financial leverage.

Customers with very tight liquidity ratios and high gearing levels.

Explain the steps you would take if the above customers are engaged in highly cyclical businesses. Would your views be different if they are engaged in moderately cyclical or non-cyclical businesses? Please elaborate.