Favorable industry risk characteristics; Large and strategically located rail network, serving major freight sources and destinations; Diversified revenue and customer base; and Moderate financial policies. Vulnerability to economic pressures in selected traffic types; Recent modest profit pressures caused by crew shortages, higher fuel costs, and increased maintenance activity; and Significant debt levels. Ratings on Union Pacific Corp. reflect the favorable risk characteristics of the U.S. freight railroad industry, its strong competitive position within the industry, and the company's moderate financial policies. Offsetting these strengths, to some extent, is price competition from other railroads and trucking companies in selected commodity areas and the capital intensity of the industry. Union Pacific operates a large rail network, which covers 23 states across the
