"Now that the federal government has raised the debt ceiling, the risk to Richardson is lessened. The city's Aaa credit rating appears to be safe, at least until the next crisis in Washington."That didn't take long. Crises in Washington come fast nowadays. Moody's may have reaffirmed the US's Aaa credit rating, but Standard & Poor's went ahead and downgraded its rating of US debt from AAA to AA+.
There are legitimate reasons to question the competency of S&P, but that's not my topic today. I want to focus on the collateral damage being inflicted. After the jump, S&P's spreading damage and the risk to Richardson.