Pittsburgh's bond rating upgraded

PITTSBURGH (AP) — Standard & Poor’s has upgraded Pittsburgh’s bond rating to A — a three-grade increase which gives the city it’s highest bond rating in more than a decade, which saw the city descend to junk-bond status.

S&P’s new rating agrees with Fitch Ratings and is a step below the A1 rating issued by Moody’s Investors Service.

S&P says the city’s finances have improved because of two government-appointed financial oversight boards, during which it has balanced six straight budgets and reduce debt to about $450 million. The service notes, however, that the city is still struggling with a pension that’s about $1 billion underfunded and its debt, though decreasing, is still substantial.

Mayor Luke Ravenstahl says his administration sought the current upgrade, the first since January 2012.