A credit ratings agency that raised concerns over a legal battle between Gov. Mark Dayton and the Minnesota Legislature has removed the state from a watch list, saying it is again confident about Minnesota's AA+ rating.

S&P Global Ratings said Friday that it believes the state will be able to pay all of its debts, including $8 million in annual bond payments on the new Senate Office Building. Those payments had been in question after Dayton used a line-item veto to kill funding for the House and Senate and the Legislature refused to meet the governor's demands for restoring the budget.

A temporary agreement reached by the two sides and approved by a judge this week will continue funding for the House and Senate through Oct. 1. In a statement, S&P said it believes that's enough time to resolve the dispute and keep payments on the Senate building up to date.

"The outlook is stable," the agency said.