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S&P Revises Freedom Holding Outlook To Positive On Stronger Fundamentals

S&P Global Ratings has revised the outlook on Freedom Holding Corp. and four core subsidiaries from stable to positive, citing lower banking-sector risks in Kazakhstan, stronger capitalization and more diversified earnings.

The agency affirmed the subsidiaries’ long- and short-term issuer credit ratings at BB-/B, while Freedom Holding Corp.’s rating remained at B-. The subsidiaries are Freedom Finance JSC, Freedom Finance Global PLC, Freedom Bank Kazakhstan JSC and Freedom Finance Europe Ltd., which operates under the Freedom24 brand.

Ratings Action Reflects Stronger Fundamentals

S&P also raised the Kazakhstan national-scale ratings of Freedom Finance JSC and Freedom Bank Kazakhstan JSC to kzA from kzA-. The move marks the group’s second positive ratings action since June, when S&P raised the four operating subsidiaries’ long-term ratings from B+ to BB-, citing progress in consolidated risk management and compliance.

“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.”

Kazakhstan’s Risk Profile Supports The Outlook

S&P lowered its industry risk score for Kazakhstan to 6 from 7, citing stronger banking regulation, higher capital levels and an improved sovereign backdrop. After Kazakhstan’s sovereign rating upgrade to BBB/A-2 on Aug. 21, 2026, the agency also moved its economic risk score to positive.

S&P expects easing inflation to support real disposable income and potentially increase participation in financial markets. Bank deposits currently offer interest rates above 10%, while lower rates could make securities markets more attractive and improve conditions for securities firms.

Capital And Earnings Diversification Remain Key

S&P said moderate balance-sheet growth and earnings diversified across sources and geographies should support Freedom’s capitalization. It also highlighted efforts to strengthen consolidated risk management and compliance across the group’s subsidiaries and jurisdictions.

The agency described Freedom as “the largest retail brokerage franchise in Kazakhstan, with an expanding presence in Europe,” supported by banking and insurance operations.

Stronger Results Add To The Momentum

The positive outlook follows Freedom’s first-quarter fiscal 2027 results for the three months ended June 30, 2026. Total net revenue rose 40% year over year to $732.5 million, while total assets increased to $14 billion from $13.2 billion at the end of March. Quarterly net income reached $31.7 million, driven mainly by the brokerage and banking businesses.

S&P said it could raise its assessment of Kazakhstan’s economic risk over the next 12 months. Any upgrade of Freedom’s operating subsidiaries would depend on such an improvement.

“As Freedom24 expands across Europe, we will continue to scale the business without compromising the standards that underpin client trust,” Tiapkin said.

Limassol Port Electrification Awaits Grid Connection And EU Funding

Plans to equip Limassol port with shore-side electricity are advancing at the technical level, but unresolved administrative procedures, a pending grid connection and the need to secure European funding continue to delay implementation.

The proposed shore-power system, also known as cold ironing, would allow vessels to connect to electricity while berthed, reducing reliance on onboard engines and cutting emissions and noise in the surrounding area.

Technical Studies Near Completion

Transport Minister Evi Tsolaki said work is progressing through the EU-backed DecarbonLim programme, which is preparing the technical assessment and feasibility study required before construction can begin. The ministry is seeking regular updates from the Cyprus Ports Authority on the studies’ completion timetable.

The initiative also involves Frederick University, Eurogate Container Terminal Limassol, DP World Limassol, the Electricity Authority of Cyprus, the Cyprus Transmission System Operator and Limassol Municipality.

Grid Connection Remains A Key Hurdle

Despite progress on the studies, construction cannot proceed until the project secures a connection to the national transmission network.

Tsolaki said the ministry has requested land from the Department of Lands and Surveys for an electricity substation. Once the site is allocated, the relevant applications can be submitted to the Cyprus Transmission System Operator to advance the grid-connection process.

Until these steps are completed, the project will remain in the preparatory phase, even if the technical studies are finalised.

European Funding Adds Urgency

The feasibility work under DecarbonLim will support an application for construction financing, Tsolaki said. A competitive European funding call is currently open, and the ministry intends to submit an application within the required timeframe.

The funding window has raised concerns in parliament. MP Fotini Tsiridou warned that further delays could undermine Cyprus’ chances of securing EU support, noting that similar port electrification projects elsewhere in the bloc have already received funding.

Speaking to Entrepreneurial Limassol, published by the Limassol Chamber of Commerce and Industry, Tsiridou said she had observed some progress but had yet to receive a formal response to her parliamentary question.

Environmental And Commercial Benefits

Tsiridou argued that shore-side electricity would deliver benefits beyond emissions reductions, including less noise and air pollution for residents near the port.

“Our port should not be disconnected from the rest of the city,” she said, describing shore-power infrastructure as both a necessity and a European obligation.

Across Europe, port electrification is increasingly linked to environmental performance and competitiveness. By allowing compatible vessels to switch off auxiliary engines while docked, shore-power systems can reduce local emissions and noise while supporting wider decarbonisation goals.

Construction Timetable Still Unclear

The Cyprus Ports Authority signed a contract with DBA S.p.A. in July 2025 for a comprehensive study of the system’s technical, economic and environmental requirements. The work was intended to establish the basis for installation and identify any necessary port infrastructure upgrades.

More than a year later, key steps concerning land allocation, grid connection and financing remain unresolved. No timetable has been announced for completing these procedures or submitting the final funding application.

Limassol’s shore-power project therefore remains between planning and implementation. Its next milestones are securing the substation site, progressing the transmission-network application and obtaining construction financing. Until these are in place, the port’s transition to shore-side electricity cannot move into the construction phase.

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