SAO PAULO (Reuters) - Charges that Brazilian President Michel Temer took bribes have weakened his plans to streamline the social security system, threatening the country’s credit quality, Moody’s Investors Service analysts wrote in a Monday report.
The resulting political turmoil may force Temer to dilute the planned pension reform or boost spending to guarantee lawmaker support, Moody’s analysts Anna Snyder and Samar Maziad wrote, adding that they expect him to conclude his term. Moody’s rates Brazil at Ba2 with a negative outlook.
(This version of the story corrects second paragraph to show that Brazil is rated Ba2, not Baa2)
Reporting by Guillermo Parra-Bernal; Writing by Bruno Federowski; Editing by Jeffrey Benkoe