Favorable risk characteristics of the U.S. freight railroad industry; Diversified mix of commodities and customers; Likelihood of continued debt reduction as a result of improved cash flow and management's commitment to strengthening the financial profile; Operating performance and service metrics among the best in the industry; 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 Southern Corp. reflect its strong competitive position as one of the two large eastern freight railroads and the strong industry risk characteristics of the U.S. freight railroad industry, offset by a somewhat leveraged (albeit improving) financial profile. The Norfolk, Va.-based freight railroad company
