Fitch Upgrades JPMCC 2013-FL3

Fitch Ratings has upgraded three classes of J.P. Morgan Chase Commercial Mortgage Securities Corp. (JPMCC) commercial mortgage pass through certificates, series 2013-FL3. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The upgrades reflect increased credit enhancement as a result of the full payoffs of three of the original four securitized loans: the $265 million Eagle Hospitality loan; the $155 million Bank of America Portfolio loan; and the $26 million Heron Lakes loan. Additionally, the last remaining loan in the pool, the SLS Beverly Hills, had a 6.6% increase in net cash flow (NCF) since Fitch's last rating action. Trust-level leverage for the remaining collateral remains low with Fitch's pooled stressed loan-to-value (LTV) and debt service coverage ratio (DSCR) at 61% and 1.72x, respectively, compared to 64% and 1.64x at issuance. The property is encumbered by a total debt stack of $147.9 million, which includes the subject $59 million senior note plus $88.9 million mezzanine debt, with positions that are fully subordinate and subject to standard inter-creditor agreements.

RATING SENSITIVITIES

Ratings are expected to remain stable throughout the remaining life of the deal. No rating actions are anticipated unless there are material changes in property performance or cash flow. The collateral performance has remained stable and is performing as expected at issuance. The borrower of the SLS Beverly Hills loan has exercised one of three 12-month extension options, extending the maturity date to February 2016 from February 2015.

The SLS Beverly Hills is a 297-room luxury hotel in Los Angeles, CA. The property is well located within Beverly Hills and features three full-service restaurants, 30,000 square feet of meeting space, two pools, a roof deck, a fitness center, business center, full-service spa and a 700-space underground parking garage. The loan sponsor is SBE Entertainment Group, and the property is managed by Starwood Hotels and Resorts. As of year-end (YE) December 2014 occupancy reported at 85.8%, average daily rate (ADR) at $335.59, and revenue per available room (RevPAR) at $287.93. This compares to YE December 2013 at 84.2% occupancy, $322.11 ADR, and $271.28 RevPAR. The SLS Beverly Hills loan is structured with a springing lockbox and ongoing required reserves for the collection of real estate taxes (100%), insurance premiums (100%), leasing costs (69.3%), and capital expenditures (100%). Total reserves reported at $2.9 million as of February 2015.

Fitch has upgraded the following classes:

--$26,000,000 class D to 'AAAsf' from 'BBB-sf'; Outlook Stable;

--$33,000,000 class E to 'BBB-' from 'BB-sf'; Outlook Stable;

--$59,000,000* class X-EXT to 'BBB-' from 'BB-sf'; Outlook Stable.

*Interest-only class

Additional information on Fitch's criteria for analyzing large loans within a single borrower U.S. CMBS transaction is available in the Sept. 19, 2014 report, 'Criteria for Analyzing Large Loans in

U.S. Commercial Mortgage Transactions', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (Aug. 4, 2014);

--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transaction' (Sept. 19, 2014);

--A comparison of the transaction's Representations, Warranties, and Enforcement (RW&E) mechanisms to those of typical RW&Es for the asset class is available in the following report: 'JPMCC 2013-FL3 -- Appendix' (Apr. 18, 2013).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

JPMCC 2013-FL3 -- Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=706649

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=980525

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