Koizumi's approval rating has plunged from as high as 85 percent in May to 40 percent after scandals forced the resignations of former Liberal Democratic Party lawmakers Koichi Kato and Muneo Suzuki. The weakening of support may undermine his ability to lead the party, which has dominated Japanese politics since 1955, and make reforms, S&P's Chambers said.
"That's going to make it difficult for him to move forward," Chambers said. "He came in with an agenda that would have helped to preserve Japan's standing at `AA+.' Unfortunately, he's not been able to carry forward with his policies."
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