The Town of Carrboro’s bond rating from Standard & Poor’s Financial Service has been upgraded from AA to AAA.

According to a press release from the Town of Carrboro, S&P gave credit to a good local economy; low unemployment; substantial reserves; exceptional budget performance; and very strong liquidity as reasons for the upgrade.

In response to the news, Carrboro Town Manager David Andrews praised the Carrboro Board of Aldermen and the town’s finance and management teams.

Andrews said the upgrade should result in “lower interest rates for any future long-term projects the Town might pursue, such as sidewalks and bike lanes.”

The AAA rating is the highest S&P rating a municipality can receive.