Corporate Credit Rating: BBB-/Positive/A-3 Standard & Poor's said today that the announcement by Union Pacific Corp. that fourth-quarter earnings will be below 1999 levels will slow improvement in the financial profile, but the rating outlook remains positive. Union Pacific's fourth quarter carloadings are expected to increase only slightly from 1999 levels, fuel prices are significantly higher than in 1999, and the company is taking a $70 million after-tax charge for a 4% headcount reduction. Still, over time, Union Pacific is expected to demonstrate an improving financial profile, supported by a solid competitive position that has regained much of the market share lost during the 1997-1998 congestion.
