(Adds background, details throughout)
NEW YORK, Nov 17 (Reuters) - Ford Motor Credit Co. plans to sell $1 billion of 10-year notes as early as Monday in a reopening of an issue sold in September, market sources said.
The issue from the finance arm of auto giant Ford Motor Co. F.N> is expected to be priced at yields of 2.55 to 2.65 percentage points more than comparable U.S. Treasuries, market sources said. J.P. Morgan and Citigroup are managing the sale.
The deal comes after a dramatic rally in Ford bonds following last week's decision by Standard & Poor's to assign a stable outlook to Ford's debt, relieving fears that the auto maker could face another downgrade to junk territory. S&P downgraded Ford and Ford Motor Credit one notch last week to "BBB-minus," the lowest investment grade. Moody's Investors Service last week affirmed its "A3" rating on Ford Motor Credit while Fitch Ratings affirmed its "BBB-plus" rating.
The issue is a reopening of 7 percent notes due 2013 originally sold in September at yield spreads of 2.80 percentage points more than Treasuries.
The notes were the most actively traded issue in the corporate bond market last week, with nearly $1.4 billion changing hands, according to MarketAxess. They recently traded at yield spreads of about 2.46 percentage points more than Treasuries, unchanged on the day, MarketAxess reported. (Additional reporting by Caryn Trokie)