[Verse 1]
When companies need capital to grow
They issue bonds, but lenders need to know
The probability of getting paid back whole
So credit models scrutinize each goal
Financial statements tell the hidden tale
Of which investments prosper, which will fail
[Chorus]
Debt to equity, current ratio strong
Interest coverage keeps the tune along
EBITDA margin, cash flow velocity
Credit scoring models measure certainty
Rate the risk from triple-A to D
Mathematical probability
[Verse 2]
Quantitative approaches crunch the math
Regression models chart the payment path
Historical defaults become the guide
Statistical patterns cannot hide
When leverage climbs too steep and tall
The warning signals start to call
[Chorus]
Debt to equity, current ratio strong
Interest coverage keeps the tune along
EBITDA margin, cash flow velocity
Credit scoring models measure certainty
Rate the risk from triple-A to D
Mathematical probability
[Bridge]
Working capital turns the gears around
Return on assets keeps firms stable, sound
Times interest earned shows breathing room
While debt service ratios predict the doom
Or fortune waiting down the line
These numbers speak in clear design
[Verse 3]
Investment grade or junk status assigned
Based on algorithms refined
Machine learning spots the danger signs
Before the corporate fate aligns
With bankruptcy or breakthrough success
The models sort out all the mess
[Chorus]
Debt to equity, current ratio strong
Interest coverage keeps the tune along
EBITDA margin, cash flow velocity
Credit scoring models measure certainty
Rate the risk from triple-A to D
Mathematical probability
[Outro]
From balance sheets to income flows
The crystal ball of credit glows
Predicting who will pay their dues
And who will sing the default blues