Union Pacific Corp.'s Proposed Senior Unsecured Notes Due 2037 And 2067 Rated 'A'

NEW YORK (S&P Global Ratings) Sept. 12, 2017--S&P Global Ratings today assigned its 'A' issue-level rating to Omaha-based Union Pacific Corp.'s proposed senior unsecured notes due 2037 and 2067. The company will use the proceeds from these notes for general corporate purposes, including to repurchase its shares. Our ratings on Union Pacific reflect the U.S. freight railroad industry's favorable risk characteristics and the company's solid competitive position, moderate financial policies, and strong liquidity. Price competition from other railroads and trucking companies on selected commodities and the company's high capital requirements, which are typical of the industry, somewhat offset these strengths. Strong cost controls and a commitment to moderate financial policies are the key factors underpinning our ratings on the company.

...NEW YORK (S&P Global Ratings) Sept. 12, 2017--S&P Global Ratings today assigned its 'A' issue-level rating to Omaha-based Union Pacific Corp.'s proposed senior unsecured notes due 2037 and 2067. The company will use the proceeds from these notes for general corporate purposes, including to repurchase its shares. Our ratings on Union Pacific reflect the U.S. freight railroad industry's favorable risk characteristics and the company's solid competitive position, moderate financial policies, and strong liquidity. Price competition from other railroads and trucking companies on selected commodities and the company's high capital requirements, which are typical of the industry, somewhat offset these strengths. Strong cost controls and a commitment to moderate financial policies are the key factors underpinning our ratings on the company. We could raise our ratings on Union Pacific if the company's earnings growth and moderate financial policies cause its funds from operations (FFO)-to-total...

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