Favorable industry risk characteristics; A large and strategically located rail network, serving major freight sources and destinations with a diversified revenue and customer base; and Moderate financial policies. Some vulnerability to economic pressures in selected commodities; and The capital intensity of operations. The ratings on Omaha, Neb.-based Union Pacific Corp. reflect the favorable risk characteristics of the U.S. freight railroad industry, as well as the company's strong competitive position and its moderate financial policies. Price competition from other railroads and trucking companies in selected commodities and the capital intensity of the industry somewhat offset these strengths. Union Pacific operates a large rail network covering 23 states across the western U.S. It has a well-diversified traffic base, consisting of energy (largely
