Australia's Treasurer Chris Bowen on Thursday welcomed Standard and Poor (S&P)'s affirmation of Australian government's AAA credit rating and stable outlook in its annual review.

"This decision is further testament to the resilience of the Australian economy and the prudent economic management of the Labor Government," Bowen was quoted by a ministerial press release.

Bowen said Australia is one of only eight countries to have a AAA credit rating and positive economic outlook from all three major international rating agencies.

S&P said Australia's AAA rating is supported by its " significant fiscal and monetary policy flexibility, economic resilience, and public policy stability (which) provide Australia with a strong ability to absorb large economic and financial shocks, as was demonstrated during the global recession in 2009."

Echoing the government's recent statements on the economic challenges ahead, S&P also noted that while the outlook for growth in the economy remains solid, the economy faces some challenges in the near term.

The government will continue to manage the nation's finances prudently and will work to manage the economic challenges ahead, the release said.

Meanwhile, Bowen made a speech on Thursday at the National Press Club, vowing to manage the country's economic transition.

"Our challenge is to manage this transitional period. From the mining investment phase to the production phase, from resources investment to investment in services, manufacturing and clean energy," he said.

Global Times