From the Wikileaks link above
5. (C/NF) A downgrade to Category 2 would be the worst-case
scenario, which would entail measures such as
freezing Australia-U.S. flight operations to current levels
and terminating code-sharing arrangements, such as the one
between Qantas and American Airlines. CASA officials are not
taking this possibility lightly and seem committed to
resolve the shortcomings in order to avoid a downgrade.
That is a big motivator to make sure things are looking rosy when the FAA return.