Moody's rates ESH Hospitality notes Ba3, loan Ba2

Moody’s Investors Service said it assigned a Ba3 rating to ESH Hospitality Inc.’s unsecured private offering of senior notes due 2027 and a Ba2 rating to the company’s amended and extended senior secured credit facility.

“ESH’s refinancing of its existing $1.3 billion term loan (which had $1.131 billion outstanding as of June 30, 2019) with an amended $631 million term loan and $500 million unsecured note is credit positive but has no impact on the company’s ratings or outlook. The transaction is credit positive because while it is leverage-neutral it improves the REIT’s liquidity by extending maturities of the existing credit facility by three years,” said Moody’s in a news release.

All other ratings for ESH remain unchanged.

The outlook is stable.

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