Standard & Poor's Ratings Services said it has raised its issuer credit rating on Texas to AAA from AA-plus based primarily on its budgetary and cash management discipline, which allowed the state to preserve a strong level of reserves throughout the great recession.

"We believe that the continued strength of the state's economy along with its budget management framework will provide state officials with significant budgetary flexibility to manage the service and infrastructure demands of a rapidly growing population," said Standard & Poor's credit analyst Horacio Aldrete-Sanchez.

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