S&P Raised the Credit Ratings of Four Freedom Subsidiaries with a Stable Outlook

S&P Global Ratings has upgraded the long-term credit ratings of four subsidiaries of Freedom Holding Corp. from “B+” to “BB-.” The outlook for all ratings is “Stable.” This applies to Freedom Finance JSC, Freedom Finance Europe Ltd., Freedom Finance Global PLC, and Freedom Bank Kazakhstan JSC.

At the same time, S&P Global Ratings maintained a short-term rating of “B” for these four companies and a long-term rating of “B-” for the holding company itself—also with a stable outlook.

S&P Global Ratings attributes the rating upgrade to Freedom’s three-year efforts in consolidated risk management and compliance, including the strengthening of these areas at its subsidiaries. Freedom manages sanctions risks in 22 countries, where it works with more than 40 regulators, according to the agency’s statement. It expects the group’s capitalization to remain high over the next 12–24 months, despite investments in the telecom and lifestyle businesses. S&P believes that the risk-adjusted capital (RAC) ratio will remain above 10% amid a planned slowdown in balance sheet growth to 20–25%.

A “BB” rating indicates that the business is less vulnerable in the short term, but warns of significant uncertainties and the possibility that the company could be more severely affected by economic difficulties or other adverse conditions. A “B” rating indicates a higher level of risk: the company is more vulnerable to adverse business, financial, or economic conditions, but is still able to meet its obligations.

Freedom Holding reported record revenue of $2.19 billion for fiscal year 2026—a 9% increase from the previous year. In addition, the holding company doubled its profit, from $76.2 million to $153.3 million.

Freedom Holding shares have risen by nearly 13% since the beginning of 2026, but their price has fallen by 4% over the past 12 months. During trading on June 24, the shares fell by about 1.6%.

This article was AI-translated and verified by a human editor