  This paper presents a convenient framework for modeling default process and
pricing derivative securities involving credit risk. The framework provides an
integrated view of credit valuation adjustment by linking distance-to-default,
default probability, survival probability, and default correlation together. We
show that risky valuation is Martingale in our model. The framework reduces the
technical issues of performing risky valuation to the same issues faced when
performing the ordinary valuation. The numerical results show that the model
prediction is consistent with the historical observations.
