A second bond ratings agency has weighed in on the potential financial implications of Gov. Mark Dayton's recent veto of legislative funding, concluding that the move will not immediately affect the state's credit.

The governor and the Legislature are locked in a legal battle, putting funding for legislative staff and payments on the new Senate Office Building in limbo as soon as July 1. But Fitch Ratings said Tuesday that enough time remains for the state's leaders to sort out their differences before the state's solid bond ratings are put at risk.

Republican lawmakers and another ratings agency, S&P Global Ratings, have raised concerns about the state running short of money to make $8 million in annual payments on the Senate building. S&P said last week that it had put the state on watch, cautioning that missed payments would likely lead to a ratings downgrade.

While Fitch agreed that a protracted dispute could prompt ratings downgrades, the agency noted that the next debt service payment on the Senate Office Building is not due until December.

Fitch also said that the state's stable financial position and the state's "sound fiscal management" are indicators that the issue will likely be resolved.

Erin Golden • 612-673-4790