NSW maintains AAA credit rating

Credit ratings agency Moody's has reaffirmed NSW's long-term AAA rating.

The agency says the rating reflects the state's diverse economic base, budget flexibility and secure and predictable grants from the Commonwealth.

"To obviously receive this endorsement in terms of the credit rating from Moody's a week or so out from the state budget is incredibly pleasing," NSW Treasurer Andrew Constance said on Friday.

NSW also holds a AAA credit rating with Standards & Poor, although the state is on negative watch.

The NSW budget will be handed down on June 17.