NEW YORK (Standard&Poor's) July 26, 2006--Standard&Poor's Ratings Services today assigned its 'A' rating to Union Pacific Railroad Co.'s $349.3 million pass-through trust certificates, series 2006-1. Union Pacific Railroad Co. is a wholly owned subsidiary of Union Pacific Corp. (UP; BBB/Stable/A-2). The debt, commonly referred to as equipment trust certificates, is being used to fund the purchase of railroad equipment. "The certificates benefit from special protection under Section 1168 of the U.S. Bankruptcy Code and are rated one full category above the corporate credit rating on UP," said Standard&Poor's credit analyst Lisa Jenkins. This reflects the likelihood that creditors will continue to receive payment at contracted rates during a potential reorganization, thus reducing default risk
