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KBRA Affirms All Ratings for BMO 2023-C5

11 Jun 2026   |   New York

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KBRA affirms all of its outstanding ratings for BMO 2023-C5 a $639.1 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a slight worsening in pool performance since securitization, including an increase in the number of the transaction's K-LOCs. However, the magnitude of the changes does not warrant ratings adjustments at this time.

As of the May 2026 remittance period, there are five specially serviced assets (13.1% of the pool balance), three (7.8%) of which are in foreclosure. KBRA identified 12 K-LOCs (30.5%), including the specially serviced assets. Of the K-LOCs, three (10.8%) have estimated losses. The K-LOCs are depicted in the table below:

Loss Given Default (000s) Loss Severity 4 Cincinnati Multifamily Portfolio MF 39,000 6.1% Y FCL N Foreclosure 06/26/2024 $4,495 11.5% 8A Cross Island Plaza OF 30,000 4.7% Y C N Specially Serviced 12/09/2025 - - 10 Sayville Plaza RT 28,000 4.4% N C N Tenant Issues 02/10/2026 - - 13 Philadelphia Life Science Portfolio IN 23,000 3.6% N C N Occupancy 01/29/2026 - - 6A6 Oak Street NLP Fund Portfolio MU 19,879 3.1% N C Y Forbearance 05/01/2025 - - 16 The Penleigh MF 15,750 2.5% N C Y Modifcation 01/30/2025 $3,111 19.8% 19 Comfort Suites Maingate East LO 14,000 2.2% N C N DSCR 04/08/2025 $3,473 24.8% 29 Steiner Portfolio - Chicago 4-Pack MF 6,620 1.0% Y FCL N Specially Serviced 08/27/2024 - - 28 Quality Inn SeaTac LO 6,458 1.0% N C N DSCR 02/26/2025 - - 30 Steiner Portfolio - Chicago 3-Pack MF 4,469 0.7% Y FCL N Specially Serviced 08/27/2024 - - 31 SureStay Plus SeaTac LO 4,174 0.7% N C N DSCR 07/29/2025 - - 33 Richmond Medical Office OF 3,625 0.6% Y C N Specially Serviced 10/01/2025 - - Total K-LOCs $194,975 30.5% $11,078 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 89.8%, compared to 92.5% at last review and 91.3% at securitization. The WA KDSC is 1.55x, compared to 1.56x at last review and securitization.

To access ratings and relevant documents, click here.

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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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