Published: May 28, 2013 11:19 PM EDT

NEW YORK (AP) - Moody's Investors Service has raised its outlook for the U.S. banking industry for the first time in five years.

The rating agency cites sustained economic growth, a better jobs picture and stronger balance sheets in raising its outlook from "Negative" to "Stable." It had been "Negative" since 2008, the year the financial crisis struck.

Moody's says that after a year of reducing losses from soured loans and building cushions against losses, banks are in a better position to handle any future economic downturn.