During a recent credit analysis of Diamond Corp, an analyst applied a structural model to estimate the probability of default. The structural model considered the company’s asset volatility, total liabilities, and market value of assets to determine the distance to default (DD). Given that Diamond Corp has an asset volatility of 30%, market value of assets of $500 million, and total liabilities of $450 million, the analyst concluded that the company's default risk is within acceptable levels.

Which of the following statements best reflects an implication of using the structural model in this scenario?