Morningstar DBRS: Lessor consolidation to continue in 2024

With a high interest rate environment and fleet financing remaining a challenge for 2024, smaller ‘zombie’ lessors will need to navigate the fiercely competitive leasing sector as lessor fleets continue to grow, highlights a Morningstar DBRS Commentary report. It added that the year ahead could see a continuation of merger & acquisition (M&A) deals, following an active second half of 2023 for the agreement. The report said: “Smaller lessor platforms are at risk given these competitive forces and challenges managing the aforementioned imbalance between asset yields and borrowing costs, as well as the overall ability to obtain cost-effective financing.” The