Finance Minister Bahk Jae-wan met representatives from the international ratings agency Standard and Poor's (S&P) and asked them to raise the nation's sovereign debt ratings, officials said Sunday.

The meeting between Bahk and S&P officials took place on Friday (local time) in Washington on the sidelines of a meeting of the Group of 20 finance ministers, according to ministry officials.

During the meeting, S&P officials took note of the financial soundness of South Korean state-run companies and financial institutions, officials said. Combined debts owed by 284 public firms jumped to 386.6 trillion won ($339.1 billion) in 2010, compared with 226.8 trillion won in 2006.

In response, Bahk said his government is mapping out measures to closely monitor the financial health of the public firms and reduce debts.

Bahk also noted that the impact from North Korea's geopolitical tensions on the South Korean economy and financial markets is limited, ministry officials said.

Early this month, Moody's Investors Service, another global ratings agency, upgraded its outlook on South Korea's sovereign debt ratings to "positive" from "stable," citing the country's improved fiscal status and solid economic growth.

S&P has maintained the outlook for South Korea's credit ratings as "stable."

Improvements in a sovereign ratings can reduce the cost of borrowing from abroad and help attract business investment and commerce, both of which are crucial for economic growth. (Yonhap)