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KBRA Upgrades One Rating and Affirms All Other Ratings for BMO 2023-5C2

6 Nov 2026   |   New York

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KBRA upgrades the rating of one class of certificates and affirms all other outstanding ratings for BMO 2023-5C2, a $776.7 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in pool defeasance since last review. Three loans totaling $155.0 million (20.0% of the pool balance) have been defeased since securitization. The remaining non-defeased portion of the pool has exhibited stable performance since securitization.

As of the October 2026 remittance period, there are two loans (1.0%) with the special servicer, including one (0.3%) that is in foreclosure. Including the specially serviced assets, KBRA identified four K-LOCs (3.1%). Of the K-LOCs, three (2.4%) have estimated losses. The K-LOCs are depicted in the table below.

Loss Given Default (000s) Loss Severity 22 2219 N Hamilton Avenue MF 10,975 1.4% N 30+ N Delinquent 07/11/2024 $312 2.8% 28 1815-1817 Putnam Avenue MU 5,650 0.7% Y 90+ N Specially Serviced 07/24/2025 $1,101 19.5% 29 2046 Mapes Avenue MF 5,250 0.7% N 60+ N Delinquent 04/07/2026 - - 35 84 Hoyt Street MU 2,025 0.3% Y FCL N Foreclosure 01/07/2025 $997 49.2% Total K-LOCs $23,900 3.1% $2,410 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 87.4%, compared to 90.5% at last review and 87.3% at securitization. The WA KDSC is 1.46x, compared to 1.45x at last review and 1.49x at securitization.

Details concerning the class with a rating change are as follows:

  • Class B to AA (sf) from AA- (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.

Information on certain affiliations between directors of KBRA Ratings and rated entities or related third parties 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 US 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. Kroll Bond Rating Agency Japan K.K. is registered as a CRA with the Japan Financial Services Agency. 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: 1017959