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 Continuing yield-improvement initiatives and efficient operations Price competition from other railroads and trucking companies in certain commodities Moderate financial policies Capital-intensive operations The outlook on Union Pacific Corp. is stable. Despite flat to modest volume growth, Standard&Poor's Ratings Services expects pricing to remain favorable over the next one to two years, resulting in further earnings growth and cash flow generation. Moderate pricing increases, strong cost controls, and a commitment to moderate financial policies are key underpinning factors of the ratings. We could raise the ratings if earnings growth results in
