S&P Upgrades Outlook on Key Subsidiaries of Freedom Holding Corp. to "Positive", DKnews.kz reports.
International ratings agency S&P Global Ratings has revised its outlook on several core subsidiaries of Freedom Holding Corp. — including JSC Freedom Finance, Freedom Finance Global PLC, Freedom Finance Europe Ltd, and JSC Freedom Bank Kazakhstan — from “stable” to “positive.” The agency affirmed their long- and short-term issuer credit ratings at “B+/B.” On the national scale, the ratings for Freedom Finance and Freedom Bank Kazakhstan were raised from “kzBBB” to “kzBBB+.” The parent company, Freedom Holding Corp., maintained its rating of “B-.”
A Milestone Driven by Structural Progress
S&P’s revised outlook recognizes significant advancements in risk management and compliance practices across the Group:
“The positive outlook reflects notable progress in building a consolidated risk and compliance framework, and in strengthening these functions across key financial subsidiaries,” — S&P Global Ratings.
The agency highlighted the Group’s implementation of formalized risk management policies, risk appetite statements, and a sanctions risk policy and methodology, along with alignment of local policies with Group-wide governance frameworks.
This centralized approach is seen as a foundation for robust oversight and control of sanctions compliance, cybersecurity, reputational, regulatory, and digital asset-related risks — all increasingly critical in the evolving financial landscape.
Financial Fundamentals Remain Strong
S&P also reaffirmed Freedom Holding Corp.’s sound financial metrics, noting:
- Risk-adjusted capital (RAC) ratio of approximately 13%
- 3-year average operating return on risk-weighted assets of 2.6% (as of March 31, 2025)
These figures reflect both strong capitalization and sustainable profitability, even amid rapid expansion and increasing regulatory expectations.
Market Leader in Kazakhstan and Beyond
Freedom Broker remains the largest retail and institutional broker in Kazakhstan, holding an estimated 50% market share. As of March 31, 2025, Kazakh citizens accounted for around 30% of the Group’s 683,000 retail brokerage clients globally.
“We may raise the ratings on the operating subsidiaries within the next 12 months if we conclude that the Group continues to strengthen its risk and compliance systems, maintains a moderate risk appetite for securities and client growth, sustains RAC above 10%, and delivers a stable return while advancing its strategic growth goals,” — S&P Global Ratings stated.
A Global Ecosystem with Kazakh Roots
Freedom Holding Corp. is far more than a brokerage. It is a diversified global financial ecosystem offering:
- Investment banking and underwriting
- Brokerage and securities trading
- Investment research and advisory services
- Mortgage and insurance
- Telecommunications
- Online ticket sales for air travel and events
- E-commerce services and more
The Group employs over 8,800 people and operates across 22 countries, including Kazakhstan, the U.S., Cyprus, Poland, Spain, Uzbekistan, Azerbaijan, and others.
Freedom Holding Corp.’s common shares are registered with the U.S. Securities and Exchange Commission and traded on the Nasdaq Capital Market under the ticker symbol FRHC.
Why It Matters
This S&P update represents more than just a rating change — it’s an acknowledgment of institutional trust in Freedom Holding Corp.’s governance, vision, and stability.
For Kazakhstan’s financial market, it signals international confidence. For clients, it affirms long-term security. For the company, it’s a green light for further global expansion.
In today’s world, ratings aren’t just numbers — they’re a strategic barometer. And Freedom’s steady ascent proves it’s a name not just known, but respected.
