On Nov. 23, 2004, Standard & Poor's Ratings Services assigned a 'BBB' rating to Union Pacific Corp.'s $250 million 4.875% notes due 2015. The company's 'BBB' corporate credit rating is affirmed. The outlook is positive. The Omaha, Neb.-based freight railroad company has about $10 billion of lease-adjusted debt. 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. Offsetting these strengths, to some extent, is price competition from other railroads and trucking companies in selected commodity areas, the capital intensity of the industry, and current network inefficiencies and operating challenges. Union Pacific operates a large rail network, which covers 23 states across
