Favorable risk characteristics of the U.S. freight railroad industry Diversified mix of commodities and customers Potential for debt reduction through improved operating results and asset sales Strong competitive position Subpar (albeit improving) credit protection measures Vulnerability to economic pressures in certain segments Significant debt levels Ratings on Norfolk, Va.-based Norfolk Southern Corp. reflect its strong competitive position as one of the two large eastern railroads and the better-than-average risk profile of the U.S. freight railroad industry, offset by a somewhat aggressively leveraged (albeit improving) financial profile. Norfolk Southern operates the fourth-largest rail system in the U.S. It also owns and operates a 58% economic interest in Conrail, the only major freight railroad serving the Northeast (CSX Corp. and Norfolk Southern
