Fitch to Rate Extended Stay America Trust 2013-ESH Commercial Mortgage P-T Ctfs; Presale Issued

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has issued a presale report on Extended Stay America Trust Commercial Mortgage Pass-Through Certificates, Series 2013-ESH.

Fitch expects to rate the transaction and assign Rating Outlooks as follows:

--$52,500,000 class A-1FL 'AAAsf'; Outlook Stable;

--$157,500,000 class A-1-5 'AAAsf'; Outlook Stable;

--$157,500,000 class A-1-7 'AAAsf'; Outlook Stable;

--$129,500,000 class A2-FL 'AAAsf'; Outlook Stable;

--$24,500,000 class A-2-5 'AAAsf'; Outlook Stable;

--$788,500,000 class A-2-7 'AAA'sf; Outlook Stable;

--$157,500,000* class X-A-5 'AAAsf'; Outlook Stable;

--$157,500,000* class X-A-7 'AAAsf'; Outlook Stable;

--$943,850,000* class X-1-7 'AA-sf'; Outlook Stable;

--$943,850,000* class X-2-7 'AA-sf'; Outlook Stable;

--$87,020,000* class X-1-5 'A-sf'; Outlook Stable;

--$87,020,000* class X-2-5 'A-sf'; Outlook Stable;

--$297,500,000* class X-1FL 'BBB-sf'; Outlook Stable;

--$297,500,000* class X-2FL 'BBB-"sf; Outlook Stable;

--$62,000,000 class B-FL 'AA-'sf; Outlook Stable;

--$62,000,000 class B-5 'AA-sf'; Outlook Stable;

--$325,000,000 class B-7 'AA-sf'; Outlook Stable;

--$52,000,000 class C-FL 'A-sf'; Outlook Stable;

--$52,000,000 class C-5 'A-sf'; Outlook Stable;

--$269,000,000 class C-7 'A-sf'; Outlook Stable;

--$54,000,000 class D-FL 'BBB-sf'; Outlook Stable;

--$54,000,000 class D-5 'BBB-sf'; Outlook Stable;

--$280,000,000 class D-7 'BBB-sf'; Outlook Stable.

* Notional amount and interest only.

The expected ratings are based on information provided by the issuer as of Jan. 8, 2012.

The certificates represent the beneficial ownership in the trust, the primary asset of which is one loan having an aggregate principal balance of approximately $2.52 billion as of the cutoff date and primarily secured by 680 hotel properties, and all furniture, fixtures and equipment, operating assets and agreements securing the intellectual property. The loan was originated by JP Morgan Chase Bank, National Association, German American Capital Corporation, Citigroup Global Markets Realty Corp., Bank of America, N.A., and Goldman Sachs Mortgage Co.

Fitch reviewed the transaction's collateral, including cash flow analysis, third party reports, loan documents, an asset summary review and site inspections.

The transaction has a Fitch stressed debt service coverage ratio (DSCR) of 1.52 times, a Fitch stressed loan-to value (LTV) of 72.1%, and a Fitch debt yield of 15.9%. Fitch's net cash flow represents a variance of approximately 7.7% to the issuer cash flow.

The Master Servicer and Special Servicer will be Midland Loan Services, rated 'CMS1' and 'CSS1', respectively, by Fitch.

The presale report is available at 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions' (Sept. 21, 2012)

--'Global Structured Finance Rating Criteria' (Aug. 4, 2011);

--'Criteria for Special-Purpose Vehicles in Structured Finance Transactions' (June 13, 2011)

--'U.S. Commercial Mortgage Servicer Rating Criteria' (Feb. 18, 2011)

--'Surveillance Methodology for U.S. CMBS Fixed-Rate CMBS Transaction' (Nov. 17 2010)

--'Counterparty Criteria for Structured Finance Transactions' (March 14, 2011)

Applicable Criteria and Related Research: Extended Stay America Trust 2013-ESH (US CMBS)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=699289

Counterparty Criteria for Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=678938

U.S. Commercial Mortgage Servicer Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=584005

Criteria for Special-Purpose Vehicles in Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=680591

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=688831

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