The recent upgrade in the corporate credit rating for Union Pacific Corp. reflected a significant improvement in operating performance and credit protection measures (albeit from very weak levels) at this Class 1 railroad over the past few years, and Standard & Poor's expectation that credit protection measures will remain at or above current levels over the near to intermediate term. Omaha, Neb.-based Union Pacific is the largest railroad in the U.S. and has about $10 billion of debt (including off-balance sheet operating leases). Ratings reflect the favorable risk characteristics of the U.S. freight railroad industry, Union Pacific's strong competitive position within the industry, and the company's moderate financial policies. Union Pacific operates a large rail network, which covers 23 states
