S&P raises ratings for four subsidiaries of Freedom Holding Corp.
S&P Global Ratings has improved long-term credit ratings for four subsidiaries of Freedom Holding Corp., according to a statement issued by the rating agency.
Ratings for Freedom Finance and Freedom Finance Global (both operating under the Freedom Broker brand), Freedom Bank Kazakhstan (under the Freedom Bank brand) and Freedom Finance Europe have all been upgraded from B to B+ on the international scale and from kzBBB- to kzBBB on the national scale.
S&P analysts emphasized their expectation that Freedom Holding Corp.’s companies will see capitalization growth, driven by a planned moderate pace of balance sheet expansion and strong profits diversified across income sources and geographic regions. They also noted that the holding is developing a unified risk management and compliance system — a mechanism designed to ensure that transactions adhere to sanctions and legislative requirements.
The agency also anticipates the sustainability of Freedom Holding Corp.’s business portfolio and financial indicators over the coming year. Analysts attribute this to a reduction in economic and industry risks in Kazakhstan, along with strengthened state oversight.
This rating upgrade followed S&P’s recent decision to raise the rating of Freedom Finance Insurance, operating under the Freedom Insurance brand, from B+ to BB- with a “stable” outlook on the international scale, and from kzBBB+ to kzA- on the national scale.
In the second quarter of fiscal year 2025 (from June to September 2024), Freedom Holding Corp. reported a 33% quarterly revenue increase, reaching $580.9 million. The company attributed this growth to a 177% rise in insurance underwriting profits, a 35% increase in net profit from securities operations, a 275% boost in revenue from foreign currency transactions and an 8% growth in commission income, primarily driven by brokerage services.
Meanwhile, Freedom Holding Corp. reported a net profit of $114.5 million from June to September. Earnings per share stand at $1.93, or $1.89, based on the diluted weighted average number of shares.
The Freedom ecosystem encompasses companies that provide financial services, including retail brokerage, investment consulting, securities trading, investment banking and underwriting. Timur Turlov, the founder of the holding, is the controlling shareholder with a 69.84% ownership stake.
The company is headquartered in Almaty, with representative offices and subsidiaries operating across 20 countries, including Kazakhstan, the U.S., Cyprus, Poland, Spain, Uzbekistan and Azerbaijan. Its common stock is currently listed on the Nasdaq Capital Market, the Kazakhstan Stock Exchange (KASE) and the Astana International Exchange (AIX).
