Large and strategically located rail network, serving major freight sources and destinations; Diversified revenue and customer base; Moderate financial policies; and Significantly improved operating efficiency (albeit from very weak levels). Vulnerability to economic pressures in selected traffic types; and Significant debt levels. 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
