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 is stable. Despite only moderate volume growth, Standard&Poor's Ratings Services expects that Union Pacific Corp. pricing will remain above inflation and its operating efficiency will remain strong over the next one to two years, resulting in further earnings growth and cash flow generation. Stable volumes, modest pricing increases, strong cost controls, and a commitment to moderate financial policies are key underpinning factors of the rating. We
