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; and Strong competitive position. Capital intensity of the business; Price competition from trucking companies, barges, and other railroads in certain commodity areas; and Significant (albeit declining) 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 Inc., the only major
