The management forecast report (MFR) is an important form of forward-looking but voluntary firm-level disclosure. The credit default swap (CDS) spread reflects the default risk premium charged by the market on the underlying debtor firm. This study investigates the impact of textual information and the interactive verifying impact of textual and numerical information in MFRs on the pricing of a debtor firm’s default risk premium as measured by CDS premium. First, we find that the abnormal changes in CDS premium around a MFR issuance date are inversely associated with (1) the textual quality and (2) negatively associated with the extent of positive textual news conveyed in the MFR issued by the referenced debtor firms. Second, we find that the significant and negative association between CDS premiums and textual news of a referenced debtor firm’s MFR is qualified by the textual readability of the MFR. Third, we find that the significant and negative association between CDS premiums and the numerical news of a referenced debtor firm’s MFR is qualified by the textual readability of the MFR. Collectively, our evidence suggests that CDS counterparties use contemporaneous textual readability to verify the quality of incentive-driven information disclosure in both the textual mode and numerical mode before impounding it into the default risk price.