Advantages of Reduced Form Models in Credit Analysis

In credit analysis, reduced form models are often used to assess the likelihood of default on a particular bond. These models typically utilize historical data and statistical methods to estimate the default probability over a specific horizon. Consider a bond with a current spread of 250 basis points over the risk-free rate. Analysts drawing on reduced form models apply factors such as credit ratings, macroeconomic variables, and market conditions to derive these estimates. Based on these factors, which of the following statements best encapsulates the key advantage of utilizing reduced form models in credit analysis?