S&P Global Ratings upgrades credit ratings of Freedom24 and other Freedom Holding Corp. units

S&P Global Ratings has raised the long-term issuer credit rating of Freedom Finance Europe Ltd., which operates under the Freedom24 brand, to 'B+' from 'B'.

S&P also raised the long-term credit ratings of three other subsidiaries of Freedom Holding Corp. — Freedom Finance JSC, Freedom Finance Global PLC and Freedom Bank Kazakhstan JSC — to ‘B+’. The short-term ratings of all the four subsidiaries were affirmed at ‘B’, while the long-term credit rating of Freedom Holding Corp. was maintained at ‘B-’.

S&P highlighted Freedom Holding's strong position as the largest retail brokerage franchise in Kazakhstan, its growing presence in Europe, and its diversified business portfolio, which includes banking and insurance operations in Kazakhstan. “We expect that targeted moderate balance-sheet growth coupled with strong earnings diversified by sources and geographies will support the group's strong capitalization,” the rating agency said in its statement.

The agency praised the holding company for “building its aggregated risk management and consolidated compliance over a complex group with multiple subsidiaries in multiple jurisdictions”.

“Stable outlooks on Freedom Holding Corp. and its core operating subsidiaries… reflect our expectations of stable business and financial profiles over the next 12 months, benefiting from reduced economic and industry risks in Kazakhstan and enhanced regulatory oversight in Kazakhstan”, the agency said.

Based in Cyprus, Freedom24 plays a key role in driving the holding’s success in the European region, further establishing the country’s reputation as a financial hub.

Evgenii Tiapkin, Executive Director at Freedom24, commented: “This milestone highlights our commitment to fostering innovation and trust in every market we operate in. The Cypriot ecosystem provides an environment for growth and collaboration, enabling us to deliver value to our clients while contributing to the local economy. As we continue to expand in Europe, we remain dedicated to the highest standards of compliance and risk management.”

This ratings upgrade coincides with Freedom Holding Corp.'s impressive market performance. At market close on December 10, 2024, its stock price (FRHC) reached $129.24, driving the company’s market capitalization to over $7.83 billion, a remarkable 60% increase since the beginning of the year. Since its Nasdaq listing five years ago, the stock has surged nearly ninefold, highlighting sustained investor confidence and the company’s significant growth trajectory.