MARKET TALK: Gulf Spill Yet To Ripple For Local Governments

12:26 (Dow Jones) State and local governments by the Gulf of Mexico haven't suffered major damage to creditworthiness because of the oil spill, S&P says. Direct payments by BP and spending by clean-up workers have helped, and the $20B escrow fund will help limit the economic impact. "But depending on several factors, including how long the spill continues and how far it spreads, the total claims made on BP, and the scope of long-term environmental degradation, the pressures on regional governments could intensify," S&P says. (romy.varghese@dowjones.com) Call us at (212) 416-2184 or email paul.vigna@dowjones.com Visit the Market Talk blog at www.djnmarkettalk.com (END) Dow Jones Newswires July 06, 2010 12:26 ET (16:26 GMT)