KBRA Downgrades Two Ratings and Affirms All Other Ratings for BBCMS 2023-C19
11 Apr 2025 | New York
KBRA downgrades the ratings of two classes of certificates and affirms all other outstanding ratings for BBCMS 2023-C19, an $847.6 million CMBS conduit transaction. The rating actions follow a surveillance review of the transaction, which has exhibited a worsening in overall pool performance since securitization including the addition of specially serviced loans and K-LOCs with estimated losses.
As of the March 2025 remittance period, there are six specially serviced assets (10.4% of the pool balance), including five (9.1%) in foreclosure, and two loans that are 30+ days delinquent (6.4%). KBRA identified nine loans (20.1%) as K-LOCs, including the delinquent and specially serviced assets. This includes one top 10 loan
- 2 Executive (3rd largest 6.4%, 28.7% estimated loss severity)
One additional K-LOC has an estimated loss:
- Pennbrook Portfolio (0.9%, 8.8%)
The remaining seven K-LOCs do not have estimated losses and represent 12.8% of the pool balance.
Excluding the K-LOCs with estimated losses, the transaction's WA KLTV is 88.7%, compared to 91.5% at last review and 90.4% at securitization. The WA KDSC is 1.62x, compared to 1.60x at last review and 1.61x at securitization.
Details concerning the classes with ratings changes are as follows:
- Class G-RR to B (sf) from BB- (sf)
- Class H-RR to CCC (sf) from B (sf)
To access ratings and relevant documents, click here.
Click here to view the report.