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 operating and profit pressures caused by crew shortages, higher fuel costs, and increased maintenance activity, and other network inefficiencies; 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, are price competition from other railroads and trucking companies in selected commodity areas, the capital intensity of the industry, and current network inefficiencies and operating challenges. Union Pacific
