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S&P Global Ratings upgraded the credit ratings of four Freedom Holding Corp. subsidiaries: Freedom Finance (Kazakhstan), Freedom Finance Global, Freedom Finance Europe, and Freedom Bank Kazakhstan. These subsidiaries received long-term issuer credit rating increases from ‘B’ to ‘B+’, with short-term ratings affirmed at ‘B’. Freedom Holding Corp.’s rating remained ‘B-‘ with a stable outlook. Two subsidiaries also saw their national scale ratings upgraded to ‘kzBBB’ from ‘kzBBB-‘.

Freedom Holding attributed the upgrade to enhanced operations and governance, emphasizing its commitment to diversification, compliance, and sustainable growth.

Operating the largest retail brokerage in Kazakhstan with expanding European presence, Freedom Holding’s upgraded ratings reflect its financial strength. The company is developing a comprehensive Kazakhstani ecosystem encompassing insurance and lifestyle services, streamlining processes like insurance claims and mortgages to improve customer relations.

The company plans continued international expansion, actively seeking opportunities while adhering to stringent compliance. S&P cited Freedom Finance’s consistent growth and geographically diversified revenue streams as key factors supporting its capitalization.

S&P noted Freedom Holding’s development of a robust risk management and compliance system across its subsidiaries, anticipating that moderate business growth, coupled with strong and diversified earnings, will maintain its strong capitalization. However, the agency cautioned against overly rapid franchise expansion to avoid straining risk management and capitalization.

Future upgrades depend on effective risk management, increased cross-selling among subsidiaries, and sustained strong capitalization while consolidating its franchise. Freedom Holding Corp., headquartered in New York, offers financial services across 22 countries. For the six months ending September 30th, the company reported record total revenues of $1.03 billion (a 33.4% increase), net profit of $375 million (an 82% increase), and total assets of $8.82 billion.