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Moody's believes that the accusation against Temer may weaken credit quality

Brazilian President Michel Temer "will survive" after the complaint of passive corruption, but will have problems approving the reform of the pension system, which can weaken the Quality of the country's credit, Moody's said today.

Sao Paulo, July 3 (EFE) .- Brazilian President Michel Temer "will survive" after the complaint of passive corruption, but will have problems approving the reform of the pension system, Which could weaken the credit quality of the country, Moody's said today.

The rating agency said in a statement that the political turmoil created In Brazil after the denunciation filed against Temer reduces the president's ability to get congressional support to approve the reform of the pension system and Pensions.

Moody's estimates that the complaint filed by the Office of the Prosecutor will not advance in the lower house, but believes that the reform vote, which was initially July, will not be held until late August or early September, in "the best of scenarios."

"If there are new allegations, we expect further delays in voting for the Reform, "said Moody's, which maintains Brazil with a Ba2 rating, included in the speculation category.

For the agency, approval of a comprehensive reform project Social security is a key factor for the credit quality of Brazil, which is plunged in a serious economic crisis that has dragged for more than two years.

According to Moody's, if the bill is not voted on this year, "it will be difficult for reforms to be approved with the current administration due to the general elections" scheduled for 2018. The reform of the pension system, which proposes to increase the age to access this benefit, the Executive carries out a labor reform that lowers the workforce by giving it a formal character To collective bargaining even if they do not comply with the law and eliminate the obligatory contribution of workers to unions.

The measures, criticized by trade unions and defended By the bosses, were the subject last Friday of a general strike, which did not manage to paralyze the country due to the low adhesion of some sectors, mainly the one of transports.

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