HMP Lewes has been awarded three marks out of four in the new Prisons Performance Rating table but inspectors warned there is room for improvement.
Martin Narey, the commissioner for correctional services, said the prison was meeting most of the targets set by the Prison Service and was delivering a "reasonable and decent regime."
But improvements were needed if Lewes was to secure benefits available to top-scoring jails.
Those ranked "high performing" will be in line for extra money with which to reward staff or invest in the jail.
They will also have "increased certainty" over future funding levels, a Prison Service spokesman said.
The service now plans to publish league tables every three months, naming and shaming jails that score one mark.
Brixton, Dartmoor and Holloway came bottom in the list, published yesterday.
Mr Narey said: "The table shows how prisons are performing against a range of indicators and clearly demonstrates where the public are getting value for money and where there is room for improvement."
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