Letter Of Comfort

Summary of Letter Of Comfort

A statement, usually in letter form, issued by a bank or other commercial entity attesting to the stature, credit worthiness, or reputation of another. The writer of the letter will, however, expressly disclaim any responsibility for the obligations of the subject party. Letters of comfort are commonly issued by parents on behalf of subsidiaries and by banks for good clients, usually in conjunction with credit or capital raising transactions.

(Main Author: William J. Miller)