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 commodity types; and Capital intensity of operations. Ratings on Union Pacific Corp. reflect the favorable risk characteristics of the U.S. freight railroad industry, the company's strong competitive position within the industry, and its moderate financial policies. Offsetting these strengths, to some extent, are price competition from other railroads and trucking companies in selected commodities and the capital intensity of the industry. Union Pacific operates a large rail network, which covers 23 states across the western U.S. It has a well-diversified traffic base, consisting of energy (largely coal); industrial products;
