NASHVILLE (AP) — Tennessee has once again received top grades from two bond ratings agencies, and an improved outlook from the third.

Moody's and Fitch gave the state their top rating of AAA with a stable outlook. Standard and Poor's rated the state at AA-plus with a positive outlook — up from the stable rating last year.

The improvement in the Standard and Poor's rating came despite potential fallout from "issues at Volkswagen." The German automaker caught in a diesel emissions test cheating scandal has its only U.S. assembly plant in Chattanooga.

The agencies praised the state for building up its "rainy day" budget reserves and for its low debt levels. But they also noted Tennessee's high reliance on manufacturing jobs and the state's below average levels of income and educational attainment.