CHICAGO--Moody's Investors Service last week said the rating outlook is poor for general obligation bonds of the Chicago Board of Education and its financial oversight authority, citing fiscal problems associated with the school system's budget crisis.

Meanwhile, the board on Friday continued negotiations with its teachers' union to reach an agreement before a court-ordered deadline of midnight. Without an agreement by the deadline, the school system would shut down indefinitely. The board has been seeking concessions from the union to help eliminate a $298 million deficit in its $2.8 billion budget for fiscal 1994, which began Sept. 1.

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