Need to Be Sure What We're Modeling

I just want to make sure that I understand what we're modeling here.  So, our dependent variable is the recovery rate.  This is what we're predicting.  Once we obtain our prediction, we would then subtract that from 1 to arrive at our LGD.  Is this correct?
- Example: LGD = 1 - recovery rate
- In our Case: LGD = 1 - predicted recovery rate