SPRINGFIELD, Ill. (WAND) - Illinois is seeing its first bond ratings upgrade in over two decades, Gov. JB Pritzker's office announced Tuesday. 

Moody's Investor Service has upgraded Illinois' General Obligation bonds rating from Baa3 with a stable outlook to Baa2 with a stable outlook. In addition, Illinois' Metropolitan Pier and Exposition Authority ratings jumped from Baa3 from Ba1 based on the state's support. Build Illinois bonds were upgraded from Baa3 to Baa2. 

These bond rating improvements are the second positive rating action for the state in a week, as Moody's ratings changes follow an outlook improvement from Fitch.

The last upgrade from Moody's came in June of 1998. Tuesday's upgrade credited "material improvements" and only "constrained use of federal aid", including raised pension payments, repayment of federal borrowing and keeping the bill backlog in check, per a press release from the governor's office. 

The state's bonds rating is a measure of credit quality, officials said, and a higher rating generally means Illinois can borrow at lower interest rates, saving taxpayers millions. 

“I promised to restore fiscal stability to Illinois, and Moody’s ratings upgrade demonstrates that Illinois’ finances are heading in the right direction for the first time in two decades. A ratings upgrade pays momentous dividends for taxpayers, and the people of Illinois deserve credit for their incredible resilience and determination,” said Pritzker. “This upgrade is the result of many leaders working together on a strong fiscal plan and putting that plan in place, and I would like to especially thank Speaker Welch, President Harmon, Leader Greg Harris, Senator Sims, Comptroller Mendoza and Treasurer Frerichs for their partnership. I also applaud Moody’s for answering our request to take a fresh look at the State and their willingness to listen to our progress and our plans.”

The full Moody's report said the following about Illinois' long-term bond outlook: 

"Illinois still faces longer-term challenges from unusually large unfunded pension liabilities, which are routinely shortchanged under the state's funding statute. These liabilities could exert growing pressure as the impact of federal support dissipates, barring significant revenue increases or other fiscal changes."

Click here to read the Moody's report in its entirety.