RIO DE JANEIRO, July 3 (Xinhua) -- Corruption charges against Brazilian President Michel Temer have weakened his ability to push through reforms considered key to economic recovery, which in turn could affect the country's credit rating, U.S. rating agency Moody's said on Monday.
While it is predicted that Temer will be able to ride out the political storm and "survive" the accusations of graft, the charges have undermined his credibility and eroded his support, said the agency.
On June 26, Brazilian Prosecutor-General Rodrigo Janot filed the charges to the Supreme Court, accusing Temer of having been bribed by executives from meatpacking group JBS in exchange for favorable decisions by the government.
Brazil's Chamber of Deputies have begun analyzing the charges for passive corruption against the president, but Temer has also vowed to fight the charges and continued to state his innocence.
A congressional vote on proposed labor and social security reforms has already been postponed until the end of August or beginning of September.
Should new charges arise, voting on the reforms could be pushed back even further, reducing the chances the reforms will be approved during Temer's administration, with general elections slated to take place in late 2018, said Moody's.
The agency currently gives Brazil a Ba2 rating with a negative outlook.
The unpopular labor and social security reforms, coupled with the corruption allegations, have driven Temer's approval rating to single digit.