Ratings on Norfolk, Va.-based Norfolk Southern reflect its strong competitive position as one of the two large eastern railroads and the better-than-average risk profile of the U.S. freight railroad industry, offset by a somewhat aggressively leveraged (albeit improving) financial profile. Norfolk Southern operates the fourth-largest rail system in the U.S. It also owns and operates a 58% economic interest in Conrail, the only major freight railroad serving the Northeast. (CSX and Norfolk Southern jointly acquired the common stock of Conrail in 1997 and began operating their respective portions in mid-1999.) The Norfolk Southern rail system consists of a 22,000-mile system serving 22 states in the Southeast, Midwest, and an extensive portion of the former Conrail east-west system from Chicago to
