Business
S&P Revises Outlook for Freedom Holding Corp. Subsidiaries to Positive
The outlook upgrade reflects substantial achievements in establishing consolidated risk management and compliance, and strengthening these functions Ratings
About this update from Freedom Holding Corp.
[{"type":"text","content":"\nThe outlook upgrade reflects substantial achievements in establishing consolidated risk management and compliance, and strengthening these functions\n\n\n\nRatings affirmed for Freedom Finance JSC; Freedom Finance Europe Ltd.; Freedom Finance Global PLC and Freedom Bank Finance Kazakhstan at “B+/B” and for Freedom Holding Corp. at “B-.”\n\n\n\nOutlook for Freedom Holding Corp. subsidiaries revised to positive from stable.\n\n\n\nOutlook for Freedom Holding Corp. maintained at stable.\n\n\n\n NEW YORK--(BUSINESS WIRE)--\nFreedom Holding Corp. (the \"Company\") (NASDAQ: FRHC), a multi-national diversified financial services holding company with a presence through its subsidiaries in 22 countries, today commented on S&P Global Ratings (\"S&P\") report published on June 26, 2025.\n\n\nThe S&P report remarked that the ratings for Freedom Finance JSC, Freedom Finance Europe Ltd., Freedom Finance Global PLC, and Freedom Bank Kazakhstan JSC were affirmed at \"B+/B\" with the outlook revised to positive from stable, and the rating of Freedom Holding Corp. itself has been kept at \"В-\" with the stable outlook maintained.\n\n\nAs the rationale for its rating action, S&P highlighted the Company's substantial achievements in establishing consolidated risk management and compliance, as well as strengthening these functions in its financial subsidiaries.\n\n\n“We believe that consolidation of risk management and compliance functions is vital for Freedom Group, which we consider to be relatively complex organizationally, with multiple financial and nonfinancial subsidiaries in various countries and with a track record of rapid growth, both organically and through acquisitions,” according to S&P.\n\n\nS&P also noted that it expects moderation of growth rates is likely to alleviate pressure on capital. \"We still consider Freedom Group's earnings to be strong despite a reduction in fiscal 2025 due to a loss in the banking segment. The three-year average core earnings (March 2023-March 2025) to risk-weighted assets reduced to 2.6% compared with the 3.5% average for March 2022-March 2024, which is still high in an international context,\" S&P said. https://disclosure.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3396738\n\n\nS&P also recognized that the rapid growth of the Company in previous years has led to the Company maturin...