NEW YORK (Standard&Poor's) Oct. 6, 2008--Standard&Poor's Ratings Services today assigned its 'BBB' rating to Union Pacific Corp.'s 7.875% $750 million notes due 2019. Proceeds from the notes will be used for general corporate purposes, including the repurchase of common stock. Union Pacific (BBB/Stable/A-2), an Omaha, Neb.-based freight railroad, has about $12 billion of lease-adjusted debt. "Ratings on Union Pacific 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," said Standard&Poor's credit analyst Lisa Jenkins. "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."
