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KBRA Downgrades Two Ratings and Affirms All Other Ratings for BBCMS 2023-C19

10 Apr 2026   |   New York

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KBRA downgrades the ratings of two classes of certificates and affirms all other outstanding ratings for BBCMS 2023-C19, a $787.2 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since KBRA's last ratings changes in April 2025. The rating actions reflect KBRA's estimated losses for two K-LOCs (7.7% of the pool balance) and the resulting loss adjusted C/E levels.

As of the March 2026 remittance period, there are four specially serviced assets (14.6%), including three (11.7%) in foreclosure, and one that is 60+ days delinquent (2.9%). KBRA identified seven loans (21.8%) as K-LOCs, including the delinquent and specially serviced assets. Of the K-LOCs, two (7.7%) have estimated losses. The K-LOCs are depicted in the table below:

Loss Given Default (000s) Loss Severity 3 2 Executive MU $54,500 6.9% Y 90+ N Foreclosure 12/11/2023 $19,111 35.1% 11 Walgreens Distribution Center IN $31,200 4.0% Y 90+ N Foreclosure 03/26/2025 - - 13 575 Broadway MU $27,365 3.5% N C N Occupancy 01/28/2025 - - 16-A-2-1 The Showboat Hotel LO $23,087 2.9% Y 60+ N Specially Serviced 03/26/2025 - - 18 Oak Street NLP Fund Portfolio MU $18,305 2.3% N C Y Forbearance 05/01/2025 - - 22 Holiday Inn Express - Hesperia LO $11,000 1.4% N C N DSCR 02/06/2024 - - 31 350 5th St & 372 Baltic St MF $6,275 0.8% Y 90+ N Foreclosure 12/12/2023 $877 14.0% Total K-LOCs $171,732 21.8% $19,988 1. K-LOC Date is the date when the most recent K-LOC was initially determined. 2. Loss Given Default assumes a 100% probability of default (PD). KBRA may determine a lower PD when estimating losses to a transaction. KBRA Estimated 2 K-LOCs Prosp. ID Loan Name Prop Type Current In- Trust Balance (000s) % of Deal Balance SS Loan Status Mod (Y/N) Primary K-LOC Reason K-LOC Date 1
Source: KBRA

Excluding the K-LOCs with losses, the transaction’s WA KLTV is 89.3%, compared to 88.7% at KBRA's last ratings change in April 2025 and 90.4% at securitization. The KDSC is 1.57x, compared to 1.62x at KBRA's last ratings change and 1.61x at securitization.

Details concerning the classes with ratings changes are as follows:

  • Class F-RR to BB- (sf) from BBB- (sf)
  • Class G-RR to B- (sf) from B (sf)

To access ratings and relevant documents, click here.

Click here to view the report.

Related Publication

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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