Freedom Bank Kazakhstan Earns Ba3 and BB- Ratings as S&P Upgrades Credit Assessment

Two agencies, two independent views

Freedom Bank Kazakhstan now has long-term assessments from both Moody’s Ratings and S&P Global Ratings. That matters because the ratings give customers, investors and business partners an outside view of the bank’s ability to meet its obligations. They’re useful reference points, though neither amounts to a guarantee.

Moody’s began covering the bank in March 2026, assigning a long-term deposit rating of “Ba3” with a stable outlook. In late June, S&P raised Freedom Bank’s long-term rating to “BB-” with a stable outlook and upgraded its Kazakhstan national-scale rating to “kzA-”. The agencies use separate methods and scales, so “Ba3” and “BB-” are complementary opinions, not equivalent marks on one shared ladder. S&P’s rating action and Moody’s initial rating announcement also provide analysts’ reasoning. That commentary is where the ratings become more informative: a rating summarizes creditworthiness over the long term, generally more than a year, while the explanation shows which strengths and risks shaped the judgment.

What S&P’s upgrade says

Only six of Kazakhstan’s 23 operating banks hold an S&P rating, giving the assessment a useful point of comparison. S&P considers the bank’s market position, capital and profitability, asset quality and risk, funding and liquidity, as well as economic and industry risks across Kazakhstan’s banking system. The rating has risen twice in 18 months: from “B” to “B+” in December 2024, then to “BB-” in June 2026. That progression is more significant than a single notch might suggest, but it shouldn’t be read as a clean bill of health. At “BB-,” S&P describes relatively low short-term risk exposure alongside potential sensitivity to substantial changes in key areas.

A rating also differs from a ranking. Rankings place banks in order by a particular measure, such as assets, deposits or capital; ratings assess the broader ability to pay customers, investors and counterparties in full and on time. If you’re assessing the bank, the practical takeaway is to treat both agencies’ opinions as independent evidence—and to read their stated assumptions alongside the rating itself.

Risk controls are behind S&P’s upgrade

The clearest signal in S&P’s repeated rating increases is the bank’s progress in managing risk. The agency points to a stronger compliance function, better controls over sanctions exposure, and attention to cybersecurity, information systems, regulatory requirements and reputational risk. That’s a meaningful improvement, though it doesn’t remove uncertainty. S&P’s “Stable” outlook means the agency sees a rating change as unlikely over the next 12–18 months. It expects stronger risk management and compliance to help Freedom Bank keep risks in check as the wider Freedom group expands. The assessment is that the bank can manage that growth; it isn’t a guarantee that growth will bring no new risks.

What Moody’s Ba3 rating says

In March 2026, Moody’s Ratings assigned Freedom Bank long-term local- and foreign-currency deposit ratings of “Ba3,” with a “Stable” outlook. The rating covers the bank as a standalone legal entity. Moody’s considered the bank’s place in Freedom Holding Corp.’s ecosystem, but did not rate the holding company as a whole. The agencies are measuring different things. Moody’s focuses on the bank’s capacity to meet deposit obligations over the long term, typically beyond a year; S&P puts more weight on risk. Moody’s cited rapid growth in Freedom Bank’s customer base and deposits, along with capitalization: tangible common equity was 16.1% of risk-weighted assets in September 2025. Ba3 signals moderate credit risk. For depositors and investors, it suggests the bank has capital and liquidity to meet obligations while operating amid market volatility. Moody’s stable outlook, like S&P’s, points to an expectation of balanced performance over the coming 12–18 months.

The figures behind a bank rating

Ratings agencies examine financial statements, including assets, funding, equity and capital adequacy, and credit risk. They may also use proprietary and nonpublic information supplied by the rated bank, such as details about major borrowers and collateral, and compare the bank with its competitors. That means an outside reader can see key reported indicators, but not necessarily every input behind an agency’s judgment. Freedom Bank’s [financial statements](https://kase.kz/files/emitters/FFBN/ffbnf5m2_2026_cons_rus.pdf) for the first half of 2026 show assets of 2.94 trillion tenge, 13.9% higher than in the same period of 2025. Equity rose 4.6% to 258.4 billion tenge, while client funds increased 17.4% to 1.77 trillion tenge. Moody’s described credit risk as low: non-performing loans were 2.9% of the loan portfolio in September 2025, and reserve coverage stood at 116%. The agency expects risks to remain manageable over its forecast period. Those figures are encouraging, but they are snapshots; the ratings outlook depends on how the bank’s balance sheet and controls hold up as it grows. For individual depositors in Kazakhstan, another practical consideration is Freedom Bank’s membership in the Kazakhstan Deposit Insurance Fund (KDIF). The scheme covers eligible deposits held by individuals and sole proprietors, up to 20 million tenge for savings deposits, 10 million tenge for current accounts and cards in tenge, and 5 million tenge in foreign currency, in the event of an insured event. Taken together, S&P’s upgrade to “BB-” and Moody’s “Ba3” give clients, investors and counterparties two independent assessments to consider. They add useful evidence about the bank’s risk controls and financial position. They’re best read alongside the underlying figures and other relevant circumstances, rather than as a standalone verdict on the bank’s stability.