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KBRA Downgrades Two Ratings and Affirms All Other Ratings for Benchmark 2023-V2

14 May 2026   |   New York

Contacts

KBRA downgrades the ratings of two classes of certificates and affirms all other outstanding ratings of Benchmark 2023-V2, an $854.8 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 review in May 2025 and securitization. The rating actions also reflect KBRA’s estimated losses from the second largest loan in the pool, Austin Multifamily Portfolio (8.8% of the pool balance) and the resulting loss-adjusted C/E levels.

Loss Given Default (000s) Loss Severity 2A1 Austin Multifamily Portfolio MF 75,000 8.8% Y 90+ N Specially Serviced 04/22/2025 $25,969 34.6% 12 KY & MN Warehouse Distribution Portfolio IN 33,061 3.9% Y 60+ N Specially Serviced 01/08/2026 - - 16A4-2 National Warehouse & Distribution Portfolio IN 20,294 2.4% Y 30+ N Bankruptcy 02/04/2026 - - 26A4-2 1201 Third Avenue OF 8,000 0.9% N C N Occupancy 01/30/2025 - - 27 Chicago Heights IN 4,500 0.5% Y 30+ Y Specially Serviced 11/26/2024 - - Total K-LOCs $140,855 16.5% $25,969 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

As of the April 2026 remittance period, there are four specially serviced loans (15.5%), of which one (8.8%) is 90+ days delinquent, one (3.9%) is 60+ days delinquent, and two (2.9%) are 30+ days delinquent. KBRA identified five K-LOCs (16.5%), including the specially serviced assets. Of the K-LOCs, one (8.8%) has an estimated loss. The K-LOCs are detailed in the following table.

Excluding the K-LOC with an estimated loss, the transaction's WA KLTV is 93.8%, compared to 91.7% at last review and 93.2% at securitization. The WA KDSC is 1.46x, compared to 1.48x at last review, and 1.49x at securitization.

Details concerning the classes with ratings changes are as follows:

  • Class F-RR to BB- (sf) from BB+ (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.

Doc ID: 1014976