RICHMOND, Va. (AP) - Standard and Poor's has reaffirmed Virginia's AAA bond rating and restored the financial outlook rating to stable in the wake of the legislature's two-year, $117 billion budget deal.

The bond-rating agency had given the state a negative financial outlook rating over a year ago.

The Richmond Times-Dispatch reports that S&P cited the budget deal, increased reserve funds and stronger projected revenues as reasons for the improved outlook.

S&P's decision comes after Moody's reaffirmed its top rating earlier this week.

The top bond rating allows the state to borrow money at lower interest rates.

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