S&P Revises Outlook for Freedom Holding Corp. Subsidiaries to Positive
- Ratings 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-.”
- Outlook for Freedom Holding Corp. subsidiaries revised to positive from negative.
- Outlook for Freedom Holding Corp. revised to stable from negative.
Among other aspects, the S&P report remarked that the ratings for Freedom Finance JSC, Freedom Finance Europe Ltd., Freedom Finance Global PLC and Freedom Bank Finance Kazakhstan (now known as Freedom Bank Kazakhstan JSC) were affirmed at “B/B” with outlook revised to positive from negative and the rating of Freedom Holding Corp. itself has been kept at “В-” with an outlook revised to stable from negative.
As the rationale for its rating action, S&P noted lower economic risk and improving banking sector supervision in
S&P also noted that it expects that moderating balance-sheet growth coupled with strong earnings will support the Company’s strong capitalization. “We expect Freedom will maintain its strong earnings in 2024-2025, supported by revenue diversification with the buildup of banking and insurance activities in
S&P also pointed out the gradual building of Freedom Holding Corp.’s consolidated risk management framework since 2023. S&P noted that the Company has recently hired a chief risk officer, chief compliance officer, and chief legal officer and has expanded its board of directors from six to seven members, including four being independent directors. They also noted that by March 2024 the Company had terminated its omnibus brokerage relationship with its
S&P can raise its ratings on the operating subsidiaries over the next 12 months if it concludes that steps to build aggregated risk management and compliance and strengthen risk governance would endure while the Company’s capitalization (as measured by S&P’s RAC ratio) remains above
About Freedom Holding Corp.
Freedom Holding Corp., a
Freedom Holding Corp. is headquartered in
Freedom Holding Corp.'s common shares are registered with the United States Securities and Exchange Commission and are traded under the symbol FRHC on the Nasdaq Capital Market, operated by Nasdaq, Inc.
To learn more about Freedom Holding Corp., visit www.freedomholdingcorp.com.
Cautionary Note Regarding Forward-Looking Statements
This release contains "forward-looking" statements, including with respect to the potential of Freedom Holding Corp. and its subsidiaries for improved ratings from rating agencies such as S&P Global Ratings, among others, its capacity to continue to enhance corporate governance, risk management and governance, and compliance and with regard to the Company’s future capitalization, earnings and growth. All forward-looking statements are subject to uncertainty and changes in circumstances. In some cases, forward-looking statements can be identified by terminology such as "expect," "new," "plan," "seek," and "will," or the negative of such terms or other comparable terminology used in connection with any discussion of future plans, actions, and events. Forward-looking statements are not guarantees of future results or performance and involve risks, assumptions, and uncertainties that could cause actual events or results to differ materially from the events or results described in, or anticipated by, the forward-looking statements. Factors that could materially affect such forward-looking statements include certain economic, business, and regulatory risks and factors identified in the Company's periodic and current reports filed with the
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Ramina Fakhrutdinova (KZ)
Public Relations
Freedom Finance JSC
+7 777 377 8868
pr@ffin.kz
Natalia Kharlashina
Public Relations
Freedom Finance Global
+7 701 364 1454
prglobal@ffin.kz
Al Palombo (US)
Global Communications Chief
Freedom US Markets
+1 212-980-4400, Ext. 1013
apalombo@freedomusmkts.com
Source: Freedom Holding Corp.