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KBRA Downgrades Eight Ratings and Affirms All Others for BBCMS 2023-5C23

2 Feb 2026   |   New York

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KBRA downgrades the ratings of eight classes of certificates and affirms all other outstanding ratings for BBCMS 2023-5C23, a $721.3 million CMBS conduit transaction. Simultaneously, KBRA removes eight classes from Watch Downgrade (DN), where they were placed on November 5, 2025. The rating actions follow a surveillance review of the transaction, which has exhibited an increase in interest shortfalls and KBRA estimated losses after Rockridge Apartments (6th largest, 7.5% of the pool) was deemed non-recoverable in October 2025.

As of the January 2026 remittance period, there are four specially serviced loans (10.3%), two of which (9.3%) are 90+ days delinquent and two (1.0%) are in foreclosure. In addition, one loan (9.0%) is 30+ days delinquent. KBRA identified five K-LOCs (19.3%), including the specially serviced and delinquent loans. Of the K-LOCs, two (8.3%) have estimated losses. The K-LOCs are depicted in the table below:

Loss Given Default (000s) Loss Severity 2 323 West 96th Street MF 65,000 9.0% N 30+ Y DQ 9/4/2025 - - 6 Rockridge Apartments MF 54,000 7.5% Y 90+ Y SS 9/5/2024 $26,533 49.1% 17 Staybridge Suites LO 13,000 1.8% Y 90+ Y SS 6/4/2025 - - 26 47 East 129th Street MF 5,500 0.8% Y FCL Y FCL 4/13/2025 $1,243 22.6% 31 919-921 Lombard Street MF 2,000 0.3% Y FCL Y FCL 11/01/2024 - - Total K-LOCs $139,500 19.3% $27,776 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 88.4%, compared to 88.4% at last review and 86.7% at securitization. The WA KDSC is 1.36x, compared to 1.39x at last review and 1.41x at securitization.

Ratings adjustments are as follows:

  • Class D to BB+ (sf) from A- (sf) DN
  • Class E to BB- (sf) from BBB (sf) DN
  • Class F to B (sf) from BBB- (sf) DN
  • Class G to CCC (sf) from BB+ (sf) DN
  • Class H to CC (sf) from B (sf) DN
  • Class X-F to B (sf) from BBB- (sf) DN
  • Class X-G to CCC (sf) from BB+ (sf) DN
  • Class X-H to CC (sf) from B (sf) DN

To access ratings and relevant documents, click here.

Click here to view the report.

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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.

Doc ID: 1013287

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