Following an improved assessment of risk in the banking sector of Kazakhstan, Freedom Holding Corp.’s largest operating market, S&P Global Ratings has revised the outlook on the long-term issuer credit ratings of the group and its four core subsidiaries from stable to positive. The long- and short-term ratings on the operating subsidiaries were affirmed at BB-/B, while the rating on Freedom Holding Corp. was affirmed at B-. S&P also raised the Kazakhstan national-scale ratings on Freedom Finance JSC and Freedom Bank Kazakhstan JSC to kzA from kzA-.
The subsidiaries covered by the action are Freedom Finance JSC, Freedom Finance Global PLC, Freedom Bank Kazakhstan JSC, and Freedom Finance Europe Ltd., which operates under the Freedom24 brand. The outlook revision is the second positive rating action on the group since June. On 24 June 2026, S&P raised the long-term issuer credit ratings of the four operating subsidiaries from B+ to BB-, with stable outlooks, citing the group's sustained progress in building consolidated risk management and compliance functions.
S&P revised its industry risk score for Kazakhstan from 7 to 6, citing continued improvement in banking regulation and supervision, the capital accumulated in the system and sovereign strength, which the agency expects to support financial stability through business and economic cycles. The industry risk trend is now stable. Following the upgrade of Kazakhstan's sovereign ratings to BBB/A-2 on 21 August 2026, S&P also moved its economic risk score for the country to positive.
S&P expects currently elevated inflationary pressure to ease, which would raise real disposable income and increase participation in the financial market. The agency notes that bank deposits in Kazakhstan currently offer interest rates above 10%, and expects a lower interest rate environment to make the securities market more attractive to savers and to improve conditions for securities firms.
The agency expects targeted moderate balance sheet growth and strong earnings diversified across sources and geographies to support the group's capitalisation. The report notes that the group is building aggregated risk management and consolidated compliance across a complex structure spanning multiple subsidiaries and jurisdictions.
Assessing the group's stand-alone credit profile, S&P describes Freedom as "the largest retail brokerage franchise in Kazakhstan, with an expanding presence in Europe", complemented by banking and insurance operations.
The revision comes against the backdrop of the group's latest financial results. In the first quarter of fiscal year 2027, covering the three months ended 30 June 2026, total net revenue grew 40% year on year to $732.5 million, led by the brokerage and banking businesses. Total assets reached $14.0 billion, up from $13.2 billion at the end of March 2026, and net income for the quarter was $31.7 million.
The improved outlook reflects the possibility that S&P revises its view of economic risk in Kazakhstan upward over the next 12 months. That would raise the anchor for banks and securities firms exposed mainly to domestic risk, and an upgrade of the operating subsidiaries is conditional on that improvement.
"The positive outlook is a meaningful vote of confidence in the direction of Freedom24 and the wider group," said Evgenii Tiapkin, CEO of Freedom24. "It recognises the discipline we have built across capital management, compliance and risk governance. For us, the message is clear: sustainable growth must be earned through strong fundamentals. As Freedom24 expands across Europe, we will continue to scale the business without compromising the standards that underpin client trust."
