The bond rating agency Standard & Poor's today upgraded the bond rating for the state of Tennessee to its highest AAA level.
Tennessee now holds the highest bond ratings issued by all three major credit rating agencies.
S&P upgraded the state from AA+ to AAA after Tennessee reported a below average jobless rate in April of 4.3 percent, compared with 5 percent nationally, and the University of Tennessee Center for Business and Economic Research projected Tennessee will grow faster than the U.S. as a whole this year.
Additionally, the Tennessee General Assembly recently appropriated an additional $100 million to the state's rainy day fund, increasing the fiscal year 2017 balance to $668 million.
These first-class ratings will translate into lower interest rates when the state borrows money.
"For the first time since 2000 and for only the second time in state history Tennessee has a triple triple-A rating from the credit ratings agencies, one of 11 states to receive this status," Gov. Bill Haslam said in a statement. "The state's Rainy Day Fund is more than double what it was in 2011, and we have the lowest debt per capita of any state, no transportation debt and recently recorded the lowest interest rate in state history."