NEW YORK (Standard & Poor's) Feb. 11, 2005--Standard & Poor's Ratings Services today revised its outlook on Union Pacific Corp. to stable from positive. The 'BBB' long-term corporate credit rating and 'A-2' short-term corporate credit rating on the railroad were affirmed. The outlook revision reflects Union Pacific's continuing operating challenges and Standard & Poor's expectation that these challenges will continue to adversely affect earnings and cash flow through 2005. "Union Pacific has taken various steps to restore its operating and financial performance and these measures should help restore network efficiency over time. However, we believe that service levels and financial results will remain depressed for awhile, and have revised the outlook accordingly," said Standard & Poor's credit analyst Lisa Jenkins.
