Company M, the parent entity of an MNE group, maintains an AAA credit rating based on the strength of the MNE group’s consolidated balance sheet. Company D, a member of the same MNE group, has a credit rating of only BBB on a stand-alone basis, and needs to borrow EUR 10 million from an independent lender.
TPG2020 Chapter X paragraph 10.184
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By OECD
Category: OECD Transfer Pricing Guidelines (2017) | Tag: Example - financial guarantees, Example 1 - implicit support, Financial guarantee, Financial transactions, Implicit support/guarantee, Treasury functions
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