Risk-to-Price Commentary: Union Pacific Corp. Nov 10

Standard & Poors, November 2010

Abstract
Standard & Poor's Ratings Services raised its corporate credit rating on Union Pacific Corp. to 'BBB+' with a stable outlook from 'BBB' on Thursday on the heels of the railroad company's 15% dividend increase, the second this year. In its rationale for the upgrade, the agency noted a 14% increase in the railroad's third-quarter volumes. "Union Pacific's credit measures have improved," Standard & Poor's said. "Given stable pricing trends, strong cost controls, and improved operating efficiency, we expect the company's revenues and operating income to continue to improve over the next several quarters." Shares in Union Pacific closed up 2% at $91.69 Thursday. Year to date, the shares have gained 39% (see chart 1). Against this backdrop, the Standard &...

Companies mentioned in this report are: CSX Corp.,Union Pacific Corp.,Norfolk Southern Corp.,CSX Transportation Inc.,Norfolk Southern Railway Co.

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

CSX Corp.,Union Pacific Corp.,Norfolk Southern Corp.,CSX Transportation Inc.,Norfolk Southern Railway Co.

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