PIERRE, S.D. (AP) — Moody's has upgraded bonds in the state to the highest rating South Dakota can attain from the credit rating agency.

Gov. Dennis Daugaard announced the upgrade Monday.

The governor's office says Moody's attributed the upgrade to the state's conservative fiscal practices and stable, healthy economy.

The firm lauded South Dakota's record of structurally balancing its budget and having zero pension liability.

Certain bonds issued through two state bonding authorities have been given an "Aa1" rating, an improvement over their previous Moody's "Aa2" rating.

Daugaard says these types of upgrades lead to significant savings in future interest payments.

Standard and Poor's in 2015 upgraded South Dakota to the highest rating that agency issues. The firm cited South Dakota's consistently strong financial position and record of conservative budgeting in the decision.

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