Citicorp started marketing $175 million of adjustable-rate preferred stock on Tuesday. The issue of seven million shares was being marketed with a proposed dividend of 84% of the yield on the three-month U.S. Treasury bill, the 10-year Treasury note, or 30-year Treasury bond, whichever is greatest.

The cumulative securities are expected to get an A2 rating from Moody's Investors Service Inc. and a BBB rating from Standard & Poor's Corp. Pricing is expected by early next week. Merrill Lynch & Co. is the lead underwriter.

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