DENVER (AP) — Colorado's credit-worthiness has stabilized after state lawmakers passed a pension rescue package.

S&P Global Ratings on Thursday improved the state's credit outlook to stable.

Last year, S&P had revised the outlook to negative and threatened to downgrade Colorado's AA rating if the pension's finances did not improve.

Colorado lawmakers in May passed a bill to pay off the pension's $32 billion unfunded debt within 30 years. It requires benefit cuts and additional contributions from employees and taxpayers.

Rating analysts called it a sustainable plan to fix the pension. But they warned that lawmakers would have to show "continuous demonstrated commitment" to paying off the debt.

For years, the state and school districts had been underfunding benefits promised to public sector retirees.