One of three major bond-rating agencies announced an upgraded rating for Suffolk on Thursday, an announcement that brings good tidings to Suffolk officials.

“This is very good news,” said Anne Seward, the city’s director of Budget and Strategic Planning. “I think the city should be very proud of their Council and the leadership they showed.”

New York-based Fitch Ratings assigned an “AA+” rating to the city, which is upgraded from “AA.” The outlook is regarded as “stable.” The new rating is only one step below the agency’s highest rank.

The new rating applies to a total of $120.5 million in new and refinanced bonds. The new bonds will help pay for upcoming public building and utility projects.

The new ratings also apply to old debt in the amount of $201.45 million, according to the rating agency.

Better ratings help the city get better interest rates on its debt, similar to the way citizens’ personal credit scores influence the interest rates on their own debt, Seward said.

“This will directly correlate to the amount of interest we pay on our debt, and it will have real dollar impact on the bottom line,” she said.

According to a press release from the ratings agency, the new rating “reflects the city’s strong and improved financial performance demonstrated by compliance with internal fiscal policies.”

The agency commended the city’s debt management guidelines, diversified economy, financial flexibility and “proactive financial management” by the administration, including funding its benefit obligations, improving its cash position and strengthening its fund balance.

“What you have is a city that’s growing at a tremendous amount and has been able to put into play a lot of efficiencies,” Seward said. “Council’s doing all the right things.”

Seward did not yet know exactly how much money the city would save thanks to the new rating, but said it would be “in the millions” during the life of the debt.

A credit summary included with the new ratings also reveals the city estimates a $4.1 million operating surplus for the fiscal year that ends June 30. The city will use the surplus, as well as $1.5 million of the undesignated balance, to pay off an economic development note, the report says.

The two other major bond-rating agencies, Moody’s and Standard & Poor’s, are expected to release their evaluations soon, Seward said.