CHICAGO –  Standard & Poor’s put Chicago on notice Monday that its A-plus general obligation rating faces a downgrade due to the size of its unfunded pension obligations and the strain of a looming $600 million spike in its pension contributions.

The agency revised its outlook to negative from stable on nearly $8 billion of GO debt. “They are facing a large uptick in their contributions and are going to have to make some progress in the next 14 months” to address the burden, whether it’s through state relief, state pension reforms, or local action, analyst Helen Samuelson said.

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