OREANDA-NEWS. S&P Global Ratings today affirmed its ratings on eight classes of commercial mortgage pass-through certificates from Wells Fargo Commercial Mortgage Trust 2014-TISH, a U. S. commercial mortgage-backed securities (CMBS) transaction (see list).

The affirmations on the principal - and interest-paying certificate classes follow our analysis of the transaction primarily using our criteria for ratingU. S. and Canadian CMBS transactions. Our analysis included a review of the credit characteristics and the current and future performance of the lodging collateral securing the two loans that are not cross-collateralized or cross-defaulted in the pool, the transaction's structure, and the liquidity available to the trust.

The affirmations on the pooled certificates also reflect our expectation that the available credit enhancement for these classes will be within our estimateof the necessary credit enhancement required for the current ratings and our views regarding the current and future performance of the transaction's collateral.

The affirmations on the class WTS-1 and WTS-2 raked certificates reflect our re-evaluation of the Westin New York at Times Square loan. These certificates derive 100% of their cash flow from a subordinate nonpooled component of the loan.

The affirmations on the class SCH-1 and SCH2 raked certificates reflect our re-evaluation of the Sheraton Chicago Hotel & Towers loan. These certificates derive 100% of their cash flow from a subordinate nonpooled component of the loan.

We affirmed our rating on the class X-2 interest-only (IO) certificates based on our criteria for rating IO securities, in which the ratings on the IO securities would not be higher than that of the lowest-rated reference class. The notional balance on class X-2 references classes A, B, and C.

The analysis of large-loan transactions is predominantly a recovery-based approach that assumes a loan default. Using this approach, our property-level analysis included a re-evaluation of the two lodging properties that secure the two mortgage loans in the trust. Our analysis also considered the volatilecollateral performance, specifically the significant declines in revenue per available room (RevPAR) and net cash flow (NCF) during the economic downturn in 2009, as well as the slight declines since issuance in reported RevPAR and NCF for both properties as of the year-ended Dec. 31, 2015, and trailing 12 months ended June 30, 2016.

According to the Sept. 15, 2016, trustee remittance report, the trust consisted of two floating-rate IO loans that are not cross-collateralized or cross-defaulted with a $381.0 million aggregate trust balance that is divided into a $272.6 million aggregate pooled trust component and a $108.4 million aggregate nonpooled trust component. According to the transaction documents, the borrowers will pay the special servicing, work-out, and liquidation fees, as well as costs and expenses incurred from appraisals and inspections conducted by the special servicer. To date, the trust has not incurred any principal losses.

We based our analysis partly on a review of the property's historical NCF for the trailing 12 months ended June 30, 2016, and years ended Dec. 31, 2015, 2014, and 2013 that the master servicer provided to determine our opinion of asustainable cash flow for the lodging properties.

The Westin New York at Times Square loan, the larger of the two loans in the trust, has a $210.0 million whole loan balance that is divided into a $150.0 million senior pooled trust component (55.0% of the pooled trust balance) and a $60.0 million subordinate nonpooled trust component that supports the class WTS-1 and WTS-2 raked certificates. In addition, the borrower's equity interest secures a $40.0 million mezzanine loan. The whole loan is IO, accruesinterest at a rate of one-month LIBOR plus 2.01% per annum, and has an initialtwo-year term with three one-year extension options. The borrower has exercised one of its three extension options, and the loan's maturity is currently Feb. 9, 2017. The loan is secured by a 46-story, 873-key, full-service hotel in the Times Square area of Manhattan, built in 2002 and renovated between 2013 and 2016. The master servicer, Wells Fargo Bank N. A., reported a 5.11x debt service coverage (DSC) for the trailing 12 months ended March 31, 2016. Our expected case value, using an 8.50% capitalization rate, yielded an S&P Global Ratings' loan-to-value (LTV) ratio and DSC of 71.2% and 1.81x (based on the maximum LIBOR cap plus spread), respectively, on the wholeloan trust balance.

The Sheraton Chicago Hotel & Towers loan, the smallest loan in the trust, has a $171.0 million whole loan balance that is divided into a $122.6 million senior pooled trust component and a $48.4 million subordinate nonpooled trust component that supports the class SCH-1 and SCH-2 raked certificates. The whole loan is IO, pays interest at a rate of one-month LIBOR plus 1.86% per annum, and has an initial two-year term with three one-year extension options. The borrower exercised one of its three extension options, and the loan's maturity is currently Jan. 9, 2017. The loan is secured by a 34-story, 1,214-key, full-service hotel in downtown Chicago, built in 1992 and renovatedbetween 2013 and 2016. Wells Fargo Bank N. A. reported a 6.90x DSC for the trailing 12 months ended March 31, 2016. Our expected case value, using a 9.00% capitalization rate, yielded a 73.1% S&P Global Ratings' LTV ratio and 1.51x S&P Global Ratings' DSC (based on the maximum LIBOR cap plus spread) on the whole loan trust balance.