In this paper we investigate the assessment of credit risk in Australian Commercial Mortgage-Backed Securities (CMBS). Adequate assessment of credit risk is critical to the success of CMBS issues. We follow Adair and Hutchinsonís (2005) segmentation of property risk in investigating how it has been assessed in Australian CMBSs which are primarily backed by direct property assets. Our analysis shows that investment quality risk, covenant strength risk, and depreciation and obsolescence risk are all well assessed in structuring CMBSs which is largely attributable to the dominance of issuers by Listed Property Trusts who legally have to report their activities and underlying collateral performance to regulatory regimes such as ASX/ASIC and their equity investors.