KBRA Assigns Preliminary Ratings to BMO 2026-C15
10 Aug 2026 | New York
KBRA is pleased to announce the assignment of preliminary ratings to 13 classes of BMO 2026-C15, a $722.8 million CMBS conduit transaction collateralized by 51 commercial mortgage loans secured by 98 properties. The collateral properties are located throughout 31 MSAs, of which the three largest are New York (18.2% of pool balance), Phoenix (10.0%), and North – Central New Jersey (8.3%). The pool’s three largest property type exposures are retail (32.3%), self-storage (21.4%), and industrial (15.0%). The largest loan in the pool, Arizona Mills (10.0%), is a 1.2 million sf outlet center located in Tempe, Arizona, approximately 11 miles southeast of the Phoenix CBD. The five largest loans, which also include Orchard at Saddleback (7.7%), U-Haul AREC Portfolio 22 (6.5%), U-Haul - AREC2 Portfolio (6.2%), and Lawrence Logistics Center (4.8%), represent 35.2% of the initial pool balance, while the top 10 loans represent 53.8%.
KBRA’s analysis of the transaction incorporated our multi-borrower rating process that begins with our analysts’ evaluation of the underlying collateral properties’ financial and operating performance, which determines KBRA’s estimate of sustainable net cash flow (KNCF) and KBRA value using our North American CMBS Property Evaluation Methodology. On a weighted average basis, the pool’s KNCF was 13.1% less than the issuer’s cash flow. KBRA capitalization rates were applied to each asset’s KNCF to derive values that were 39.6% less than third party appraisal values. The pool has an in-trust KLTV of 82.8% and an all-in KLTV of 84.0%. The process also deploys rent and occupancy stresses, probability of default regressions, and loss given default calculations to determine losses for each loan which, in conjunction with pool concentration and other relevant factors, are used to assign our credit ratings.
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