KBRA Affirms All Ratings for BMO 2023-C7
13 Dec 2024 | New York
KBRA affirms all of its outstanding ratings for BMO 2023-C7, a $737.4 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since securitization with the addition of specially serviced loans and K-LOCs. However, the magnitude of the additions does not warrant ratings adjustments at this time.
As of the November 2024 remittance period, there are two specially serviced assets (6.8% of the pool balance), which is relatively high for a conduit that is seasoned for only one year. The specially serviced assets include one (2.4%) that is 90+ days delinquent. KBRA identified four K-LOCs (12.2%) including the specially serviced assets. This includes:
One Top 10 loan:
- The Park at Trowbridge (7th largest, 4.5% of the pool balance)
The remaining three K-LOCs represent 7.8% of the pool balance and do not have estimated losses.
The transaction’s WA KLTV is 85.9%, compared to 85.8% at securitization. The WA KDSC is 1.52x, compared to 1.53x at securitization.
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Related Publication
Methodologies
- CMBS: North American CMBS Single Borrower & Large Loan Rating Methodology
- CMBS: North American CMBS Property Evaluation Methodology
- CMBS: Methodology for Rating Interest-Only Certificates in CMBS Transactions
- CMBS: North American CMBS Multi-Borrower Rating Methodology
- Structured Finance: Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology