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.

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

Coram officials could not be reached for comment.