Maine’s credit rating has been upgraded by Moody’s Investors Service from Aa2 to Aa1, the service’s second-highest rating, state officials announced on Wednesday.

Moody’s, in issuing its rating, said Maine “sustained financial improvements including a large increase in reserves and solid pension contributions practices” and had a “structurally sound budget.”

“This significant ratings upgrade from a well-respected global credit ratings agency shows that our hard work to invest in Maine people, grow our economy and produce strong, balanced state budgets has improved Maine’s financial strength and positioned our state well for future growth,” said Gov. Janet Mills in a statement.

State Treasurer Henry Beck said that the state has “pursued policies that help Maine people and businesses grow the economy. This upgrade by Moody’s shows that fiscal governance and good policies matter.”