On May 29, 2002, Standard&Poor's raised its corporate credit rating on Union Pacific Corp. to 'BBB' from 'BBB-' and its commercial paper rating to 'A-2' from 'A-3', reflecting the railroad company's improved operating performance and financial measures. In addition, ratings of related unit Union Pacific Railroad Co. were raised (see list below). At the same time, Standard&Poor's assigned preliminary 'BBB' senior unsecured debt, 'BBB-' subordinated debt, and 'BB+' preferred stock ratings to Union Pacific's $1 billion Rule 415 shelf registration. The outlook is positive. Omaha, Neb.-based Union Pacific is the largest railroad in the U.S. and has about $10.8 billion of debt (including off-balance sheet obligations). The rating actions reflected the significant improvement in operating performance
