Kroll Bond Rating Agency (KBRA) releases research on our approach to incorporating environmental, social, and governance (ESG) factors in the credit rating process for aviation companies.

Key Takeaways

• Climate change is likely to affect various aviation assets in different ways, creating opportunities for some issuers and risks for others.
• Environmental impacts on the aviation industry may result in higher capital expenditures as aviation companies adapt to their end users’ needs and regulatory changes.
• Stakeholder engagement, especially managing consumer preferences and labor relations, has the potential to affect a company’s reputation and its ability to access capital, which is a key credit risk.
• As part of our governance analysis, KBRA evaluates the issuer’s risk management policies, regulatory oversight, government relations, cybersecurity plans, and record of managing through geopolitical risks.

Click here to view the report.

Related Publications

• ESG Global Rating Methodology
• Credit Ratings Deserve ESG Risk Analysis, Not ESG Scores

About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

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