Keepwell Agreement

Keepwell Agreement

An agreement between a parent company and a subsidiary in which the parent company provides a guarantee on the subsidiary's debt for the duration of the agreement. The keepwell agreement reduces the risk to the subsidiary's debt securities and may be beneficial for its stockholders.
References in periodicals archive ?
A keepwell agreement is a contract between a parent company and a subsidiary to maintain solvency and financial backing throughout the term set in the agreement.
commercial paper rating benefits from a keepwell agreement provided by its parent company, Mitsubishi Corporation, and is fully backed by Mitsubishi Corporation as well as by its own substantial liquid assets
Allianz SE provides explicit support to Allianz Global Corporate & Specialty, North America in the form of a quota share reinsurance agreement, as well as a keepwell agreement.
PEPCO is PCI's current parent and the relationship between the two companies is governed by a keepwell agreement.
commercial paper based on a keepwell agreement between TAH and its parent company, Takeda Chemical Industries Ltd.
The Keepwell Agreement between Heller and Fuji will be amended to reflect the reduction in Fuji's ownership stake in Heller.
Although a Keepwell Agreement exists between Heller and Fuji, Fitch views Heller as a standalone credit.
commercial paper benefits from a keepwell agreement provided by its parent, Mitsubishi Corporation (MC), and is fully backed by unused committed and uncommitted bank credit facilities as well as MIC's own substantial liquid assets.
s US$300 million commercial paper program, which benefits from a keepwell agreement from Japanese parent company Marubeni Corp.
The rating is supported by a keepwell agreement with the parent company, Komatsu Ltd.
which benefits from a keepwell agreement with the parent, have been raised (see below).
Although no legally binding guarantees are provided for USHOL and the two mentioned finance vehicles, each of them is separately provided with a keepwell agreement from ABB Asea Brown Boveri Ltd.