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Moody's drops Chicago's credit rating to 'junk'

CHICAGO, May 12 (Reuters) - Moody's Investors Service on Tuesday pushed Chicago's credit rating into the "junk" category, citing limited options for easing the city's growing unfunded pension liability in the wake of a court ruling last week.

The downgrade of ratings on Chicago's $8.1 billion of general obligation and some city revenue debt could trigger up to $2.2 billion in accelerated payments on that debt, according to Moody's.

(Reporting by Karen Pierog; Editing by Matthew Lewis)