Fear checks lowering Morale: How's it work?

[Omnirizon]

So I've witnessed (I think) that a unit with Fear will cause all units making the Fear check to lose Morale.

I've looked up Fear and Moral in the manual. While it notes that the Fear effect forces a Morale roll every turn that a unit is under its effect, and explains the numbers in the Fear and Morale rolls, it doesn't explain how Fear rolls cause units to lose Morale. Yet, it seems this is what I've witnessed, and I'm almost certain I've read around the forums that the Fear effect does indeed lower Morale; such that a unit with strong Fear need not even score a hit or even attack, and eventually all opponents will rout due to simply the Fear lowering their Morale to the point that they will fail the Fear check.

So can someone diverge the specifics on how simply making a Fear check can cause Morale to drop?