- letter of comfort
letter of comfort ˌletter of comˈfort noun letters of comfort PLURALFORM [countable]FINANCE a letter from a company to a bank in support of a subsidiary of the company that is asking for a loan; = COMFORT LETTER:
• The bank may be content to be given a letter of comfort instead of a guarantee.
* * *letter of comfort UK US noun [C] (plural letters of comfort) (also comfort letter)► FINANCE a letter from a company that tells a bank that it supports a request for a loan made by one of its subsidiary companies (= one of the companies that it owns): »
The parent company withdrew its letter of comfort and the funding required to sustain the subsidiary.► ACCOUNTING a letter from an accountant about a company that is selling shares for the first time, that states that the information in the company's accounts is correct: »
The function of the letter of comfort is to reduce the underwriters' liability risk resulting from a misleading prospectus.
Financial and business terms. 2012.
Look at other dictionaries:
letter of comfort — noun (law) A letter sent by a person in authority to provide assurances about intended actions • • • Main Entry: ↑letter … Useful english dictionary
Letter Of Comfort — A letter issued to a lending institution by a parent company acknowledging the approval of a subsidiary company s attempt for financing. The letter of comfort in no way guarantees the loans approval for the subsidiary company. It merely gives… … Investment dictionary
Letter of Comfort — Ein Comfort Letter ist eine von einer Gesellschaft abgegebene Erklärung, die einen Sachverhalt, eine Analyse oder eine Prüfung bestätigt und so quasi beglaubigt. Comfort Letter von Wirtschaftsprüfungsgesellschaften Bei der Prüfung von… … Deutsch Wikipedia
letter of comfort — A letter to a bank from the parent company of a subsidiary that is trying to borrow money from the bank. The letter gives no guarantee for the repayment of the projected loan but offers the bank the comfort of knowing that the subsidiary has made … Accounting dictionary
letter of comfort — 1) A letter to a bank from the parent company of a subsidiary that is trying to borrow money from the bank. The letter gives no guarantee for the repayment of the projected loan but offers the bank the comfort of knowing that the subsidiary has… … Big dictionary of business and management
letter of comfort. — See comfort letter. * * * … Universalium
letter of comfort. — See comfort letter … Useful english dictionary
letter of comfort — noun <! possibly UK and AU only here A type of letter popular in the 1980s addressed to a lender giving some type of reassurance about the position of a borrower (or prospective borrower). Such a letter is written by someone substantial such… … Wiktionary
letter of comfort — /ˌletər əv kʌmfət/ noun a letter supporting someone who is trying to get a loan … Dictionary of banking and finance
letter of comfort — noun an assurance about a debt, short of a legal guarantee, given to a bank by a third party … English new terms dictionary