The outlook has turned positive.
S&P Global Ratings sees room for further improvement in Freedom’s credit profile, citing lower risks in Kazakhstan and continued progress in the group’s risk management framework, DKNews.kz reports.
On September 4, S&P Global Ratings revised the outlook on the long-term credit ratings of Freedom Holding Corp. and four of its key subsidiaries from stable to positive.
Freedom keeps BB-/B ratings but gains room for another upgrade
The entities covered by the rating action are Freedom Finance JSC, Freedom Finance Global, Freedom Finance Europe and Freedom Bank Kazakhstan JSC. Their ratings were affirmed at BB-/B.
At the same time, S&P raised the Kazakhstan national-scale ratings of Freedom Finance JSC and Freedom Bank Kazakhstan JSC from kzA- to kzA.
This is the second positive rating action for the group in just a few months. On June 24, 2026, the long-term ratings of four key subsidiaries were upgraded from B+ to BB-, while the national-scale ratings of the two Kazakhstan-based entities were raised from kzBBB+ to kzA-.
We previously reported on Freedom’s earlier upgrade to BB-.
The latest decision differs from the June action. S&P did not raise the international ratings of the operating companies again, but instead changed the outlook to positive. In practical terms, this signals that another positive rating action could follow if the favorable trends continue.
Kazakhstan’s upgrade to BBB improves the risk backdrop
One of the factors behind the revision is S&P’s stronger assessment of Kazakhstan’s economic environment.
On August 21, 2026, S&P upgraded Kazakhstan’s sovereign credit rating from BBB-/A-3 to BBB/A-2. The outlook on the long-term sovereign rating remained stable.
Following that decision, the agency improved its assessment of Kazakhstan’s banking industry risk from 7 to 6 and revised the industry risk trend to stable. The economic risk trend was also changed from stable to positive.
S&P links the improvement to stronger regulation and supervision, accumulated capital buffers and the resilience of the public sector. According to the agency, these factors should help Kazakhstan’s financial system navigate different phases of the economic cycle with lower risks to financial stability.
The sovereign upgrade has already affected other major Kazakhstan-based companies. In early September, S&P also upgraded the ratings of KazMunayGas and Tengizchevroil to BBB following the sovereign rating action.
Lower inflation and interest rates could support brokerage activity
In Freedom’s case, S&P is looking beyond the group’s internal improvements. The positive outlook also reflects a possible shift in consumer behavior if inflation and interest rates decline.
“The outlook revision on all Freedom group entities reflects our expectation that the current elevated inflationary pressures will gradually ease. This, in turn, could support growth in real disposable incomes and may eventually increase participation in financial markets and brokerage activity. In addition, lower interest rates could make securities more attractive to households that currently favor bank deposits offering rates above 10%. As deposit rates decline, operating conditions for securities market companies in Kazakhstan could become more favorable,” S&P Global Ratings said.
The agency’s logic is directly tied to competition for household savings.
As long as bank deposits offer yields above 10%, they remain a strong alternative to securities. If rates decline, part of that advantage could fade, potentially encouraging more retail investors to consider brokerage products.
For Freedom, whose business spans both brokerage and banking, such a shift could become one of the factors supporting further market growth.
S&P is closely watching Freedom’s risk management and compliance
The second major positive factor is tied to the group itself.
S&P points to progress in Freedom’s consolidated risk management framework and compliance function. For a holding company operating across multiple jurisdictions, the ability to control risks at group level remains an important part of the rating assessment.
The agency also expects moderate balance-sheet growth and highlights Freedom’s strong financial performance, as well as the diversification of earnings across business lines and markets.
According to S&P, the combination of moderate growth and strong profitability should help support the group’s capitalization as it continues to expand.
Back in June, when S&P upgraded the ratings of Freedom’s subsidiaries, the agency also linked the positive momentum to improvements in risk management. The September outlook revision suggests that this factor continues to play a meaningful role in Freedom’s credit profile.
Freedom operates in 24 countries
Freedom Holding Corp. brings together financial, telecommunications and a range of digital businesses. The group also operates online platforms for airline tickets, cultural and sporting events, as well as e-commerce services.
Its companies employ more than 12,100 people, while subsidiaries and business units operate in 24 countries, including Kazakhstan, the United States, Cyprus, Armenia, Uzbekistan and EU member states.
Freedom Holding Corp. shares are listed on the Nasdaq Capital Market under the ticker FRHC.
The positive outlook does not automatically mean that a rating upgrade will follow. The next test for the group will be its ability to maintain strong capitalization while expanding the business and continuing to strengthen its integrated risk management framework — the same factors S&P continues to emphasize in its assessment of Freedom.
