Standard&Poor's Ratings Services' ratings on U.S.-based Union Pacific Corp. reflect the favorable risk characteristics of the U.S. freight railroad industry, as well as the company's solid competitive position, moderate financial policies, and strong liquidity. Price competition from other railroads and trucking companies in selected commodities and the capital intensity of the industry somewhat offset these strengths. Given rising freight volumes, strong operating efficiency, and stable pricing trends, we expect Union Pacific to maintain satisfactory operating profitability and maintain FFO to debt in the mid-30% area and total debt to capital in the mid-40% range. We characterize the company's business risk as strong, financial risk as intermediate, and its liquidity as strong. Union Pacific operates a large rail network
