"The actions taken to reduce various forms of opposition to the government since July last year have undermined the country's administrative capacity and damaged private sector confidence [and so the] outlook was changed to negative from stable.”
The negative rating was placed on bond issuer Hazine Mustesarligi Varlik Kiralama AS which is owned by the Turkish government, the release specified.
"The impact of ongoing political and geopolitical tensions on domestic confidence, and the heightened external pressures that led to a steep depreciation of the lira and high inflation, will suppress growth in the near-term," the release explained. "Domestic developments that have undermined domestic and foreign investor confidence such as terrorist attacks have had significant adverse consequences."
Moody's added that the Turkish government's ability to use debt to finance programs is stronger than other ranked peers.