Union Pacific Corp.'s Proposed Senior Unsecured Notes Rated 'A'

NEW YORK (S&P Global Ratings) March 29, 2017--S&P Global Ratings today assigned its 'A' issue-level rating to Omaha-based Union Pacific Corp.'s proposed senior unsecured notes, which will be issued in two tranches. The company will use the proceeds from these notes for general corporate purposes, including share repurchases. 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. We characterize the company's business risk profile as strong, its financial risk profile as modest, and its liquidity as

...NEW YORK (S&P Global Ratings) March 29, 2017--S&P Global Ratings today assigned its 'A' issue-level rating to Omaha-based Union Pacific Corp.'s proposed senior unsecured notes, which will be issued in two tranches. The company will use the proceeds from these notes for general corporate purposes, including share repurchases. 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. We characterize the company's business risk profile as strong, its financial risk profile as modest, and its liquidity as strong. Strong cost controls and a commitment to moderate financial policies are the key factors underpinning our ratings on the company. We could raise...

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