Oil spill may hurt state's credit

If oil from the BP spill makes its way to Florida's coast, it could force ratings agencies to cut the state's credit ratings, says one analyst at Moody's Investors Service.

“Cities, towns, school districts, and counties will likely experience a decline in property tax values, which will necessitate a reduction in services or an increase in other revenue to maintain current rating levels,” said Edith Behr, a Moody's analyst.

Cuts to their credit ratings would make borrowing money more expensive for local and state governments.