NEW YORK - Moody's Investors Service said it has downgraded to A3 from A2 the underlying rating on the village of Arcade, N.Y.'s $2.2 million of outstanding rated general obligation bonds.

The bonds are secured by a general obligation pledge as limited by the property tax cap.

The A3 rating reflects the village's small and rural tax base, manageable debt burden, below average socioeconomic indicators and weakened and limited finances. Financial operations are expected to improve in fiscal 2012 but remain narrow in coming fiscal years.

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