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 Capital intensity of operations. Standard&Poor's Ratings Services' ratings on U.S.-based Union Pacific Corp. reflect the favorable risk characteristics of the U.S. freight railroad industry, as well as the company's solid competitive position, moderate financial policies, and strong liquidity. Price competition from other railroads and trucking companies in selected commodities and the capital intensity of the industry somewhat offset these strengths. Given rising freight volumes, strong operating efficiency, and stable pricing trends, we expect Union Pacific to maintain satisfactory operating profitability and
