On the back of promising economic numbers, speedy post-pandemic recovery and strong future financial prospects, the state’s bond rating has been returned to 2017 levels by ratings agencies.

“The upgrade reflects our view that the Commonwealth’s commitment to strengthen its budget management practices supported by the state’s improved reserves and strong economy will be sustained through near-term recessionary pressures,” Standard & Poor’s said in notice to investors.

According to Treasurer Deb Goldberg, the ratings agency has moved the rating for general obligation bonds issued by the state from AA or “positive outlook” to AA+ or “stable outlook”. The state’s long term ratings for Commonwealth Transportation Fund bonds moved from AA+ to AAA.

“We are extremely pleased that the S&P credit rating is now aligned with the other ratings for the Commonwealth’s General Obligation bonds,” Goldberg said in a Tuesday statement. “The Governor’s proposed Fiscal Year 2024 budget sent a strong signal that the state’s commitment to prudent financial management continues across Administrations. Our Rainy-Day Fund Balance has reached an historic high of approximately $7.1 billion with additional deposits forthcoming, providing excellent coverage for when, no doubt, it will rain again.’

The state’s bond rating was dropped in 2017 in response to lower than expected tax revenues and a “tendency to experience revenue volatility, elevated debt levels, and below-average pension funded ratio.”

Following the downgrade, the Baker Administration and subsequent Legislatures began adding more and more money to the state’s reserves in the hope of eventually seeing the reversal issued Tuesday.

Fiscal 2024’s budget, as offered by the House last week, would see the rainy day fund pushed upwards of $9 billion, and lawmakers are hoping to change the cap on the state’s reserve cash pool to potentially add even more.

“I’m thrilled to see S&P recognize the work that we have been doing with the Legislature and Treasurer Goldberg in just a short time to continue to build the state’s reserves, while also investing in programs and people to ensure that our economy remains strong and vibrant,” Gov. Maura Healey said in a statement.