New Jersey has received a credit rating upgrade, with Kroll Bond Rating Agency raising the state’s rating from A+ to AA-.

The rating agency cited New Jersey’s track record of making full actuarially required pension contributions, progress in reducing long-term liabilities and improvements in state budget management.

The AA- rating is the highest rating KBRA has given New Jersey since it began rating the state in 2015 and marks the state’s first credit rating upgrade under Governor Mikie Sherrill.

State officials say stronger credit ratings can help New Jersey borrow money at more favorable rates when financing major infrastructure and other long-term projects.

Governor Sherrill said the upgrade reflects recent efforts to address the state’s finances, including maintaining a multibillion-dollar surplus, making a full pension payment and reducing the state’s structural budget deficit.