CHICAGO — Chicago's heavy use of non-recurring revenues to balance its budget and sizable unfunded pension liabilities drove Standard & Poor's to drop the city's general obligation rating from the double-A category on Friday.

The agency downgraded the rating applied to $6.8 billion of GOs to A-plus with a stable outlook from AA-minus. The review comes ahead of the city's delayed sale of $804 million of new-money and restructuring GOs.

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