SACRAMENTO, Calif. (AP) - California's credit rating is rebounding, reflecting the relative stability of its state budget.
Moody's Investors Services upgraded the rating Wednesday from A1 to Aa3. It cited "positive governance changes," an improved financial position and a good job managing debt.
The move follows similar upgrades last year by Standard & Poor's and Fitch Ratings as California began recovering from the recession.
It's the first time California has had such a high rating from Moody's since 2001. Even so, it remains relatively low.
California is tied with Arizona and Connecticut for 46th place on Moody's ranking. New Jersey and Illinois are lowest.
Last week, Gov. Jerry Brown signed a $108 billion general fund budget that pays down debt, builds a rainy day fund and provides additional money for schools and health care.
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