A Manhattan bond ratings agency Wednesday downgraded the Coram Fire District because of budget deficits and a limited tax base.

Moody's Investors Service dropped the district's bond rating to A2 from Aa3, due to its "limited financial flexibility." The rating affects $500,000 in general obligation bonds, the firm said in a news release.

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The firm said the fire district had shown "a multiple-year trend of operating deficits" with reserve funds used to close budget gaps.

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"Additionally, capital project spending has reduced capital reserves in recent years," the firm said.

Coram officials could not be reached for comment.