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Keepwell Agreement

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Keepwell Agreement
A contract between a parent company and its subsidiary to maintain solvency and financial backing throughout the term set in the agreement.

Notes:
This is a method by which subsidiary companies may increase the creditworthiness of debt instruments and corporate borrowing.


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PEPCO is PCI's current parent and the relationship between the two companies is governed by a keepwell agreement.
Although a Keepwell Agreement exists between Heller and Fuji, Fitch views Heller as a standalone credit.
The rating is supported by a keepwell agreement with the parent company, Komatsu Ltd.
 
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