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  "documentTitle": "Distress Alert July 2025",
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  "authorName": "Alvarez & Marsal",
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  "notes": "The slide uses a series of donut charts to visualize trends in corporate distress, robustness, and performance metrics from FY21 to FY24.",
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      "text": "Nearly 700 businesses, or 8.8% of the companies, were classified as distressed in 2024, vs 8.4% in 2022.",
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      "text": "Figure 1: Trends in Distressed companies, Companies lacking robustness, and Companies lacking performance from FY21 to FY24.",
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      "text": "In this report, we explore the key findings of our latest analysis and discuss how the current economic outlook is likely to shape corporates' financial health through the rest of 2025 and beyond.",
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      "text": "While distress levels stabilised year-on-year, they are still higher than two years ago. Nearly 700 businesses, or 8.8% of the companies, were classified as distressed in 2024, vs 8.4% in 2022.",
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      "text": "As profitability and cash flows pressures intensify amid the current tariff volatility, highly leveraged businesses may struggle to meet their financial obligations.",
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      "kind": "paragraph",
      "text": "Reflecting these risks, Fitch Ratings raised its 2025 default rate forecast for European leveraged borrowers in May. We view this tumultuous period as an opportunity for companies to pursue simultaneous enhancements in balance sheets and operational efficiency.",
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      "kind": "paragraph",
      "text": "The findings highlight vulnerabilities in sectors most exposed to tariffs, such as Automotive and Manufacturing, which have experienced some of the largest increases in distress levels across Europe.",
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      "text": "2 https://www.fitchratings.com/research/corporate-finance/us-tariffs-to-affect-issuers-of-two-thirds-of-european-leveraged-debt-16-05-2025",
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      "kind": "title",
      "text": "INTRODUCTION",
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