Standard & Poor's has bumped the District's rating on its general obligation bonds up by one notch.

Citing the city's "improved financial position which has been strengthened by its strong revenue performance," the New York-based agency said that it had upgraded its rating for D.C. to AA-, up from A+.

D.C. Mayor Vincent Gray hailed the news.

"This decision by Standard & Poor's is an affirmation of my administration's commitment to fiscal discipline and stability," Gray said in a statement. "I'm pleased that our policies are working to better our fiscal health not only now, but also for future generations of District residents."

Higher bond ratings generally lead to lower interest rates, which can save the District millions of dollars over decades.

Gray led a delegation to New York last month to lobby the nation's major credit ratings agencies.

After the visit, Ward 2 Councilman Jack Evans, who chairs the council's finance committee, said he thought the District "might" get an upgrade from S & P.

He said the other two agencies -- Moody's and Fitch -- "were not inclined to give us an upgrade in any category at all."