The rating agency Standard & Poor's has upgraded the Municipality of Anchorage's general obligation bond rating from AA to AA+, city officials announced Wednesday.

The improved rating will result in lower interest expense on bonds the municipality issues, which will save taxpayers' money, Mayor Dan Sullivan said in a written statement.

The rating agency said the city has a "strong and improved financial position and policies," according to city officials.

The city is planning a bond sale in September.