letter of comfort
noun [ C ]
ukusplural 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.