Keepwell Agreement

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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 ?
The senior unsecured debt ratings of Sojitz subsidiaries supported by keepwell agreements have also been upgraded to B1 from B2, Moody's said.
The program benefits from keepwell agreements from both NEC USA and NEC Corp.
The CP programs benefit from keepwell agreements from the parent.