CHICAGO — Moody's Investors Service hit the Chicago Public Schools' $6.4 billion of debt with its second downgrade in recent months and underscored its dim view of the credit by leaving it with a negative outlook as the district struggles with mounting fiscal challenges.

Moody's lowered the rating to A2 from A1. It had downgraded the rating to A1 and also assigned a negative outlook in July as the board prepared to adopt a $5.2 billion fiscal 2013 budget dependent on nearly draining the district's reserves to help close a $665 million gap.

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