North American freight railroad industry's positive risk characteristics; Large and strategically important rail network that serves major freight sources and destinations with a diversified revenue and customer base; Weak demand for some commodities such as coal, but also continuing yield-improvement initiatives and efficient operations; and Price competition from other railroads and trucking companies in certain commodities. Moderate financial policies; Strong credit measures; and Capital-intensive operations, with high ongoing maintenance capital expenditures. The outlook on Union Pacific Corp. is stable. Despite expected ongoing declines in volume growth and revenues due to weakness in demand for highly profitable coal and crude oil by rail, S&P Global Ratings expects Union Pacific's core pricing growth will continue to exceed inflation and its operating efficiency
