AAA credit rating safe for now, but Moody's warns of vulnerabilities

A major ratings agency has cautiously re-affirmed Australia's AAA credit rating in the wake of the Budget.

But Moody's Investor Services has signaled that the rating could be vulnerable to any negative shocks from China or a major downturn in Australia's housing market.

While leaving Australia's rating at AAA with a stable outlook, Moody's has warned against any slowing in the pace of budget repair.

I spoke with Moody's senior vice president Marie Diron.