NY -- Standard & Poor's CreditWire 5/29/98 -- Standard & Poor's today lowered its ratings on Union Pacific Corp. and its subsidiaries (see list below). The ratings were removed from CreditWatch, where they were placed Feb. 26, 1998. In addition, Standard & Poor's affirmed its 'A-3' commercial paper rating on the company. The outlook is negative. The downgrade reflects the impact of persistent, serious congestion on Union Pacific's financial position. The recent slowed pace of improvement in eliminating congestion is a significant factor in the downgrade. Specifically, Union Pacific yesterday announced that it expects to report a loss from continuing operations for the second quarter of 1998, due to the negative impact of congestion on revenues, costs, and customer claims.
