Morningstar DBRS: Decarbonisation not likely to impact ratings short-term

As the global aviation industry gradually begins to shift towards decarbonisation, Morningstar DBRS does “not expect the sector’s ratings to be materially affected by transitional risks in the near term,” explains Rohit Kumar, assistant vice president of Diversified Industries. However, over a longer period, carbon and greenhouse gas emissions cost factors could rise from ‘relevant’ to ‘significant’ in Morningstar’s ratings process, ‘resulting in changes to current ratings or trends, compared with the impact of their current relevant status’. The global credit rating agency believes that the ‘long and gradual process’ towards decarbonisation in the airline sector will initially focus on