Virgin Aust has 'limited financial buffer'

Standard & Poor's has affirmed Virgin Australia's B+ credit rating but warned the airline has only a limited financial buffer against potential downsides.

Standard & Poor's warns Virgin Australia has a limited financial buffer against potential downsides. (AAP)

Virgin Australia has only a limited financial buffer against volatile fuel prices, foreign exchange movements and variable passenger demand, a leading credit rating agency has warned.

Standard & Poor's highlighted the situation in a statement in which it affirmed the airline's B+ rating following the announcement of a restructure and annual savings of $300 million.

"In our opinion, Virgin's recently announced capital restructure is sufficient to alleviate its near-term funding requirements," Standard & Poor's said.