UPDATE 1-Austria finmin-Moody's talks went well, AAA safe

VIENNA Nov 22 (Reuters) - Austria's finance minister expressed confidence on Tuesday that the country would hold on to its AAA sovereign rating after encouraging discussions with ratings agency Moody's.

Austria's borrowing costs, along with those of France and the Netherlands, have climbed sharply in recent weeks as contagion from the euro zone debt crisis spread to top-rated sovereigns.

Spreads on 10-year Austrian government debt over benchmark German Bunds widened to euro-era highs but started to narrow last week.

Moody's officials have been in Austria on a regular visit to check the country's financial health and are expected to announce their findings soon.

There has been market speculation that Austria's rating could be at risk after comments from several financial officials -- including the head of the government's debt committee -- along these lines.

But Finance Minister Maria Fekter gave a clear signal of confidence in Austria's rating after the Moody's meetings.

"(The talks) went very well, there is no change to the status quo, namely the triple-A," she told reporters before a cabinet meeting.

The government announced plans last week to introduce a constitutional debt brake to get a firmer grip on public finances and protect its triple-A rating.

Ratings agency Fitch reacted warmly to the plan last week while Moody's said in a note on Monday that the debt brake showed Austria had "strong political commitment to sound public finances."

The debt brake would limit the structural budget deficit to 0.35 percent of gross domestic product by 2017. Fekter said on Tuesday she hoped to have this adopted by the spring of next year.

However, the plan will need support from two-thirds of Austrian lawmakers, meaning that the government will need to call on the support of at least one opposition party.

Austria's opposition parties have all voiced doubt over the debt brake plan and have made demands -- such as the introduction of a wealth tax -- in exchange for support. Fekter would not be drawn on possible concessions.

"The parliament is in negotiations at the moment, the party chiefs are talking about it," she said.

Moody's said in its note that it expected Austria's opposition parties to come around to the debt brake idea.