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Turkey’s record low credit rating on Sept. 11 stems from administrative issues in the country, and will not improve unless the government reforms economic policies drastically, Turkish economist Mahfi Eğilmez said.

Noting an overall steady decline in Turkey’s ratings since its first evaluation in 1990, the economist said that the country’s current low rating is partially related to the shrink of the national economy and the major foreign currency debt Ankara is in.

Meanwhile, finance giant Moody’s said that Turkey’s downgraded ranking was a result of three liabilities, two of them in the domestic balance sheets.

“Turkey’s external vulnerabilities are increasingly likely to crystallize in a balance-of-payments crisis,” a Moody’s analyst said on Sept. 11, adding that Turkey’s reserves were quickly melting away.

“As the risks to Turkey’s credit profile increase, the country’s institutions appear to be unwilling or unable to effectively address these challenges,” was an unusual element among the reasoning for Turkey’s credit downgrade, Moody’s said as the third component of the downgrade.

Moody’s also included “Turkish officials’ inadequate response to financial problems” as part of the items on a negative outlook for investment in Turkey.

“These statements reveal that one of the major depressors of Turkey’s credit rating is the administration. It also seems that economic precautions will not help much without this issue being resolved,” Eğilmez said.

Moody’s also listed the volatility of the Turkish Lira as a reason for the negative outlook, as well as the tension between Ankara and Greece in the Eastern Mediterranean.