On July 29, 2005, Standard&Poor's Ratings Services assigned its 'A' rating to Union Pacific Railroad Co.'s $338.951 million pass-through trust certificates, series 2005-1. Union Pacific Railroad Co. is a wholly owned subsidiary of Union Pacific Corp. (BBB/Stable/A-2). The debt, commonly referred to as equipment trust certificates, is being used to fund the purchase of railroad equipment. The certificates benefit from special protection under Section 1168 of the U.S. Bankruptcy Code and are rated one full category above the corporate credit rating on Union Pacific. This reflects the likelihood that creditors will continue to receive payment at contracted rates during a potential reorganization, thus reducing default risk on those obligations. The enhancement also reflects the relatively stable value of
