S&P Global Ratings has upgraded the long-term ratings of the following Freedom Holding Corp. (FRHC) subsidiaries from ‘B+’ to ‘BB-’ and affirmed their short-term ratings at ‘B’: JSC Freedom Finance, Freedom Finance Global, Freedom Finance Europe, JSC Freedom Bank Kazakhstan. The outlook is Stable.
In addition, the Kazakhstan national scale ratings of JSC Freedom Finance and JSC Freedom Bank Kazakhstan were upgraded from ‘kzBBB+’ to ‘kzA-’.
The long-term credit rating of Freedom Holding Corp. was affirmed at ‘B-’.
The rating upgrades reflect Freedom Group’s three-year track record of establishing and maintaining a robust group-wide risk management and compliance framework, as well as strengthening these functions across its financial subsidiaries. This framework enables FRHC to effectively monitor and manage risks at the group level, including sanctions compliance, cybersecurity, reputational, regulatory, and cryptocurrency-related risks, all of which are becoming increasingly important globally.
The subsidiaries continue aligning their internal policies with the Group’s risk management and compliance standards, which are continuously enhanced. The Holding conducts an annual global risk assessment, performs stress testing twice a year, and develops mitigation plans accordingly. As a technology-driven company, the Group places significant emphasis on information systems and cybersecurity risks.
This framework operates across both financial and non-financial businesses and is promptly implemented within newly established and acquired subsidiaries. The Group’s risk-based and principles-based compliance system enables it to manage sanctions and anti-money laundering (AML) risks across the 22 countries in which it operates and to interact with more than 40 regulatory authorities.
“We expect the Group to maintain strong capitalization metrics over the next one to two years despite continued investments in its telecommunications and lifestyle businesses. In our base-case scenario, we expect the Group’s risk-adjusted capital (RAC) ratio to remain above 10% throughout this period, supported by a planned moderation in balance-sheet growth to approximately 20–25%, strong profitability of its financial subsidiaries, and certain equity capital injections.
We continue to view Freedom Group’s earnings profile as strong. The ratio of average core earnings over the three-year period from March 2024 to March 2026 to risk-weighted assets is approximately 2.2%, which remains a high level by international standards,” S&P Global Ratings stated.
According to the agency, Freedom Group has become one of Kazakhstan’s leading digital fintech ecosystems. The total number of clients served by companies within Freedom Holding Corp. has increased to 8.1 million.
Including users of partner companies operating within the broader Freedom ecosystem, the total user base exceeds 14 million.
About the Company
Freedom Holding Corp. is a diversified financial services company engaged in brokerage, securities trading, investment research and advisory services, investment banking and underwriting, mortgage lending, insurance, telecommunications, online ticket sales for air travel, cultural and sporting events, online supermarket services, and many other activities.
Including its subsidiaries, Freedom Holding Corp. employs more than 11,800 people.
The Holding’s subsidiaries and business units operate in 22 countries, including Kazakhstan, the United States, Cyprus, Poland, Spain, Uzbekistan, and others.
Freedom Holding Corp.’s common shares are registered with the U.S. Securities and Exchange Commission (SEC) and trade on the Nasdaq Capital Market under the ticker symbol FRHC.
Media Contacts: [email protected]
www.freedomholdingcorp.com