Moody's Investors Service upgraded Pittsburgh's debt rating and removed the city from its watch-list.
The rating service credited the city's strengthening financial operations, including a projected surplus increase in fiscal 2006.
Moody's increased its rating on the city's $842 million debt from Baa3 to Baa2, which means the city's financial risk is now about average for a municipality. Its bonds had been considered junk as recently as late 2004.
"This is good news for every stakeholder in the city, especially the residents and business community," Mayor Luke Ravenstahl said. "It signals that we are in fact on the right track to a better future."
Moody's Analyst Geordie Thompson said the city is "on it's way."
"Their five-year plan does include deficits beyond 2008," he said, but "there's time for them to deal with the problems."
