On Dec. 17, 2003, Standard & Poor's Ratings Services assigned a preliminary 'BBB/BBB-' rating to Union Pacific Corp.'s $1 billion Rule 415 shelf registration, under which the company may issue senior unsecured or subordinated debt obligations. The company may also issue preferred stock under the shelf. At the same time, Standard & Poor's affirmed its ratings, including the 'BBB/A-2' corporate credit ratings, on the company. The outlook is positive. Omaha, Neb.-based Union Pacific has about $10 billion of lease-adjusted debt outstanding. Ratings on Union Pacific reflect the favorable risk characteristics of the U.S. freight railroad industry, its strong competitive position within the industry, and the company's moderate financial policies. Union Pacific operates a large rail network, which covers 23 states
