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Standard & Poor's affirmed Australia's long-term AAA credit rating due to the country's monetary policy flexibility and economic resilience.

In a statement released on Friday, the agency also affirmed mining-driven Australia's short-term A-1+ sovereign credit rating, with a stable outlook.

"The ratings on Australia reflect Standard & Poor's view of the country's ample fiscal and monetary policy flexibility, economic resilience, public policy stability and its sound financial sector," credit analyst Kyran Curry said.

"These factors demonstrate Australia's strong ability to absorb large economic and financial shocks, such as the global recession in 2009.

"These strengths are moderated by Australia's high reliance on external savings and commodity income to fund growth, its high household debt, and emerging fiscal pressures associated with an ageing population," Curry added.

The agency said the Australian economy had performed relatively well in the year ended June 30 as mining exports offset temporary economic weakness associated with natural disasters.

It said the economy "has favourable prospects for sustained growth while there remains strong demand for commodities from emerging Asia, particularly China".

Curry added that the robust outlook for commodity prices, combined with a strong pipeline of mining investment, would underpin a return to trend growth of 3.5 percent by 2013.

Australia was the only advanced economy to weather the global downturn without entering recession, thanks largely to the resilience of key export markets such as China.