Standard & Poor's Ratings Services has upgraded California's credit rating a day after voters approved changes to the state's rainy day fund.
The agency raised the credit rating from "A'' to "A+" on California's general obligation debt Wednesday.
Despite the upgrade, only New Jersey and Illinois have worse credit ratings than California.
Analyst David Hitchcock wrote that the changes approved under Proposition 2 will help smooth out the effects of California's boom-and-bust revenue cycle.
The measure, supported by nearly 69 percent of voters, will set aside windfalls for use when the economy sours and calls for paying down more long-term debt.
It requires the state to save 1.5 percent of annual revenue. The reserve could grow to as much as 10 percent of the general fund, double its current maximum.