The ratings on Norfolk, Va.-based Norfolk Southern Corp. reflect its strong competitive position as one of the two large eastern freight railroads and the favorable industry risk characteristics of the U.S. freight railroad industry. Offsetting these strengths, to some extent, are price competition from other railroads and trucking companies and the capital intensity of the industry. Norfolk Southern operates the fourth-largest rail system in the U.S. The Norfolk Southern rail operations consist of a 21,000-mile system serving 22 eastern states, the District of Columbia, and the province of Ontario in Canada. Norfolk Southern enjoys healthy positions in the transportation of a number of commodity groups. Its coal business, which is centered around the substantial coal reserves in Virginia, West Virginia,
