**S&P Gives Freedom24 Positive Outlook on Stronger Capital and Earnings**
S&P Global Ratings has upgraded the outlook for Freedom Holding Corp and its four core subsidiaries from stable to positive. This decision is based on an improved evaluation of banking-sector risks in Kazakhstan, enhanced capitalisation, and diversified earnings within the group. The ratings agency has maintained the long- and short-term issuer credit ratings for the operating subsidiaries at BB-/B, while Freedom Holding Corp's rating remains at B-.
Evgenii Tiapkin, CEO of Freedom24, expressed optimism regarding the outlook revision, stating, “The positive outlook is a meaningful vote of confidence in the direction of Freedom24 and the wider group.” He attributed this recognition to the discipline established in capital management, compliance, and risk governance.
The subsidiaries affected by this rating action include Freedom Finance JSC, Freedom Finance Global PLC, Freedom Bank Kazakhstan JSC, and Freedom Finance Europe Ltd, which operates under the Freedom24 brand. This marks the second positive rating action for the group since June 2026, when S&P raised the long-term issuer credit ratings of the four operating subsidiaries from B+ to BB- with stable outlooks. This earlier upgrade was attributed to ongoing advancements in consolidated risk management and compliance functions across the group.
In addition to the outlook revision, S&P has also upgraded the Kazakhstan national-scale ratings for Freedom Finance JSC and Freedom Bank Kazakhstan JSC from kzA- to kzA. The ratings agency has revised its industry risk score for Kazakhstan from 7 to 6, reflecting improvements in banking regulation and supervision, increased capital within the financial system, and the country's overall sovereign strength. These factors are expected to bolster financial stability, with the industry risk trend now considered stable.
Following a sovereign rating upgrade for Kazakhstan to BBB/A-2 on August 21, 2026, S&P has also shifted its economic risk score for the country to positive. The agency anticipates that currently high inflationary pressures in Kazakhstan will ease, which could lead to an increase in real disposable income and greater participation in financial markets. Additionally, S&P noted that bank deposits in Kazakhstan currently offer interest rates exceeding 10%, which may enhance the attractiveness of the securities market for savers and improve operating conditions for securities firms.
S&P highlighted that targeted moderate balance-sheet growth and strong earnings diversified across various sources and geographies are expected to support the group’s capitalisation. The agency commended Freedom Holding Corp for its efforts to establish aggregated risk management and consolidated compliance across its complex structure, which spans multiple subsidiaries and jurisdictions.
In its assessment of Freedom’s stand-alone credit profile, S&P characterized the group as “the largest retail brokerage franchise in Kazakhstan, with an expanding presence in Europe,” bolstered by its banking and insurance operations. The positive outlook coincides with robust financial results reported by the group for the first quarter of fiscal year 2027, which ended on June 30, 2026. During this period, total net revenue surged by 40% year-on-year to $732.5 million, primarily driven by the brokerage and banking sectors. The group's total assets increased to $14.0 billion, up from $13.2 billion at the end of March 2026, while net income for the quarter reached $31.7 million.
S&P indicated that the revised outlook reflects the potential for an upgrade in its assessment of economic risk in Kazakhstan within the next 12 months. Such an improvement could elevate the anchor used for banks and securities firms with predominantly domestic risk exposure. However, any upgrade of the operating subsidiaries would depend on this enhancement in the economic risk assessment.
Tiapkin emphasized the importance of maintaining strong fundamentals for sustainable growth, stating, “For us, the message is clear: sustainable growth must be earned through strong fundamentals.” He assured stakeholders that as Freedom24 continues to expand across Europe, the company will focus on scaling its business without compromising the standards that foster client trust.
The positive outlook from S&P Global Ratings signifies a pivotal moment for Freedom Holding Corp and its subsidiaries as they navigate the evolving financial landscape in Kazakhstan and beyond.