Full faith and credit

Full faith and credit refers to a guarantee by one government entity of the debt of another entity. This phrase is most commonly employed when a financially secure government entity is propping up the finances of a financially insecure government institution. Its effect is to substitute the higher credit rating of the more secure institution for that of the lesser entity, thereby lowering the risk and therefore the cost of the debt issuance.

The United States government, which is considered to be risk-free, uses this phrase to assist the debt security issuances of various quasi-governmental entities.