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KBRA Affirms All Ratings for BMO 2023-C7

12 Dec 2025   |   New York

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KBRA affirms all of its outstanding ratings for BMO 2023-C7, a $736.5 million CMBS conduit transaction. The affirmations follow a surveillance review of the transaction, which has exhibited a worsening in pool performance since securitization with the addition of specially serviced loans and K-LOCs. However, the magnitude of the additions does not warrant ratings adjustments at this time.

As of the November 2025 remittance period, there are three specially serviced assets (11.3% of the pool balance), of which two (6.9%) are in foreclosure and one (4.5%) is delinquent. KBRA identified six K-LOCs (19.5%) including the specially serviced assets. Of the K-LOCs, one (2.4%) has an estimated loss. The K-LOCs are depicted in the table below:

Loss Given Default (000s) Loss Severity 7A1 The Park at Trowbridge MF 33,000 4.5% Y 90+ Y Specially Serviced 06/03/2024 - - 8 Tusk Multifamily Portfolio MF 33,000 4.5% Y FCL Y Specially Serviced 10/14/2025 - - 11 Utica Park Place RT 27,000 3.7% N C Y Tenant Issues 07/15/2025 - - 15 Hyatt Regency Schaumburg LO 24,000 3.3% N C Y DSCR 11/15/2024 - - 19A2 Knoll Ridge Apartments MF 17,500 2.4% Y 90+ Y Foreclosure 06/27/2024 $6,120 35.0% 26 Holiday Inn Kansas City LO 9,380 1.3% N 30+ Y Delinquent 09/12/2025 - - Total K-LOCs $143,880 19.5% $6,120 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-LOC with an estimated loss, the transaction’s WA KLTV is 90.6%, compared to 85.9% at last review and 85.8% at securitization. The WA KDSC is 1.48x, compared to 1.52x at last review and 1.53x at 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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