A credit ratings agency has removed Illinois from a credit watch since legislators approved a budget and ended a more than two-year impasse.

S&P Global Ratings said Wednesday the outlook on debt ratings is stable.

Illinois has the lowest credit rating of any state and agencies had warned of another downgrade to “junk” status if lawmakers didn’t approve a budget.

S&P says the odds of Illinois’ credit falling to below investment grade in the next year has “substantially diminished,” but Illinois will “suffer an extended fiscal hangover” from the stalemate.

However, Moody’s Investors Service has indicated it might cut Illinois’ rate regardless of the budget.