Ford Motor Credit is marketing $1 billion of securities supported by auto loans to investors in the U.S. asset-backed securities market, sources said on Monday.
The upcoming sale features one-year, two-year and three-year AAA-rated tranches that will be underwritten by Barclays Capital, JPMorgan Securities and Morgan Stanley, market sources said.
Ford's sale will not be sold under the Federal Reserve's Term Asset-Backed Securities Loan Facility, known as TALF, created to revive consumer lending and reopen the securitization market crippled by a credit crisis in 2008.
As the tone in the ABS market continues to improve post-TALF, market participants have relied less on funding under the emergency program.
Fitch recently revised the rating outlooks for the auto finance firm and automaker Ford Motor Co to positive from stable. It cited better-than-expected progress in Ford's cost reduction program, production and inventory discipline that has led to solid pricing performance as well as continued market share gains.
(Reporting by Nancy Leinfuss; editing by Jeffrey Benkoe)