Dragon Slayer sword's morale is 100%... what's it doing for me?

[jpinard]

There are plenty of items which have morale, but you can't "suppress" in the sense it can't be upgraded. So I have this dragon sword who's morale is at 100% and I can't figure out what that means.

Notes:

1. Does it affect troop morale when fighting dragons?
2. Does it mean I'll get a critical hit every time I hit a dragon?
3. Does it have other features or is it maybe just for fun?