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KBRA Downgrades Six Ratings and Affirms All Other Ratings for BMO 2023-C6

13 Aug 2026   |   New York

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KBRA downgrades the ratings of six classes of certificates and affirms all other outstanding ratings for BMO 2023-C6, a $596.0 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since securitization. The rating actions reflect KBRA's estimated losses for four K-LOCs (10.2% of the pool balance) and the resulting loss-adjusted C/E levels.

As of the July 2026 remittance period, there are six specially serviced assets (11.6%), of which three (9.2%) are in foreclosure, one is 60 days delinquent (1.0%), and one is REO (0.7%). KBRA identified 12 K-LOCs (20.5%), including the specially serviced assets. Of the K-LOCs, four (10.2%) have estimated losses. The K-LOCs are depicted in the table below:

Loss Given Default (000s) Loss Severity 6 Maple Creek Village MF $28,200 4.7% Y FCL N Foreclosure 06/27/2024 $5,573 19.8% 10 Cincinnati Multifamily Portfolio II MF $21,000 3.5% Y FCL N Foreclosure 06/27/2024 $4,985 23.7% 15 Midwest Anchor Retail Portfolio RT $15,570 2.6% N C N Tenant Issues 06/02/2025 - - 17 Cambria Phoenix Chandler LO $13,761 2.3% N C N DSCR 03/31/2026 - - 24 Holiday Inn Santee LO $7,513 1.3% N C N DSCR 01/08/2025 $4,206 56.0% 25 Best Western Plus Diamond Valley Inn LO $6,354 1.1% N C N DSCR 05/12/2025 - - 26 Minton Road Professional Center OF $6,100 1.0% N C N Occupancy 05/11/2026 - - 27 La Quinta Inn & Suites Lubbock South LO $5,877 1.0% Y 60+ N Specially Serviced 12/05/2025 - - 28 2021 Avenue X OF $5,500 0.9% Y FCL N Specially Serviced 04/04/2024 - - 30 938 East 4th Street MF $4,400 0.7% Y C N Specially Serviced 06/27/2024 - - 31 Society Hill Portfolio MU $4,000 0.7% Y REO N REO 01/03/2024 $1,609 40.2% 32 Mini U Storage - Maple Shade SS $3,950 0.7% N C N DSCR 06/02/2025 - - Total K-LOCs $122,224 20.5% $16,372 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 estimated losses, the transaction’s WA KLTV is 85.3%, compared to 83.6% at last review and 85.7% at securitization. The WA KDSC is 1.55x, compared to 1.59x at last review and securitization.

Details concerning the classes with ratings changes are as follows:

  • Class E-RR to BB (sf) from BBB- (sf)
  • Class F-RR to B- (sf) from BB (sf)
  • Class G-RR to CCC (sf) from B (sf)
  • Class XERR to BB (sf) from BBB- (sf)
  • Class XFRR to B- (sf) from BB (sf)
  • Class XGRR to CCC (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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