PHOENIX (AP) - Moody's Investors Service has upgraded Arizona's credit rating to its second-highest level.
The bond-rating agency announced the Aa1 rating on Tuesday. That's one notch below the agency's top Aaa rating.
Moody's cites Arizona's growing economy and rainy day fund along with its shrinking debt. It notes that Arizona has below-average pension liabilities.
The service also upgraded its ratings for the School Facilities Board and for bonds sold in 2006 to finance the Arizona Game and Fish Department building. Those bonds rose one notch to Aa2.
Better credit ratings allow the state to sell bonds at a lower cost to finance construction and infrastructure projects.