Moody's will maintain Australia's top-notch sovereign credit rating, despite predicting mounting public debt and an uphill battle for the government as it tries to pass measures to improve the budget's health.

In positive news for the Turnbull government, the global credit rating agency on Wednesday said it had decided to affirm the federal government's AAA rating with a "stable" outlook - in contrast with Standard & Poor's decision last month to downgrade their outlook to "negative."

Explaining the decision, Moody's said it expected the economy would remain resilient in an uncertain global environment. The budget was also in better shape than that of other countries with AAA ratings, the cost of servicing public debt was very low, and the country had a strong financial institutional framework, it said.

The decision comes a month after the ratings agency put the Turnbull government on notice following the slim federal election outcome, expressing concerns about its ability to prosecute its economic agenda.