Latest news with #S&PGlobalRatings
Business Insider
a day ago
- Business
- Business Insider
Freedom Holding Corp.: S&P Global Ratings Upgrades Outlook on Key Operating Subsidiaries to 'Positive' on Strengthened Risk Management and Compliance
Almaty, Kazakhstan, June 27th, 2025, FinanceWire International credit rating agency S&P Global Ratings has revised the outlook on Freedom Holding Corp.'s core operating subsidiaries from 'Stable' to 'Positive,' while affirming their credit ratings at 'B+/B'. The revised outlook applies to Freedom Finance JSC, Freedom Finance Europe Ltd., Freedom Finance Global PLC, and Freedom Bank Kazakhstan JSC. The rating of the parent company, Freedom Holding Corp., was affirmed at 'B-' with a Stable outlook. Positive Outlook: recognition of systemic progress The revised outlook reflects Freedom Holding's significant achievements in consolidating and enhancing its risk management and compliance functions across the organization. Over the past two years, the group has implemented a centralized risk management policy, adopted unified risk appetite standards, established a compliance project management office, and expanded its oversight team to include 129 risk specialists and 162 compliance professionals operating across 22 jurisdictions. 'We've come a long way — turning fragmented control functions into a unified, centralized system at the group level. This decision reflects the maturity of our governance model,' commented CEO Timur Turlov. Focus on resilience: lower risk and balanced growth The holding's overall capitalization strengthened in fiscal year 2025. Its risk-adjusted capital (RAC) ratio rose from 11.6% to around 13%, supported by moderate balance sheet growth, a decline in economic and industry risks in Kazakhstan, and a resilient brokerage business. As of March 2025, Freedom Group serves around 5 million customers, including over 4.4 million financial clients, with its SuperApp becoming a key digital tool for users' day-to-day financial activities. Market leadership in Kazakhstan, growth in Europe S&P highlighted Freedom's continued leadership in Kazakhstan's retail brokerage sector, serving approximately 683,000 clients worldwide, of whom over 151,000 executed at least one trade in the last quarter of FY2025. The group is also expanding its presence in Europe, with 391,000 clients via its Cyprus-based subsidiary and offices in 10 EU countries. The holding company continues to invest in the telecom segment and maintains a sustainable business model supported by income from brokerage operations. About Freedom Holding Corp. Freedom Holding Corp. is an international financial and technology group listed on the Nasdaq (ticker: FRHC). The company offers investment, banking, insurance, and digital services through its integrated platform, Freedom SuperApp. The group operates in 22 countries, including Kazakhstan, the United States, Cyprus, Poland, Spain, Uzbekistan, and Armenia. The Company's principal executive office is located in New York City. Freedom Holding Corp. is regulated by the U.S. Securities and Exchange Commission (SEC). Contact Public Relations
Fibre2Fashion
a day ago
- Business
- Fibre2Fashion
Indirect impact of tariffs on EMs to be more visible later: S&P Global
Though the direct impact of shifting US trade policy on economic growth in emerging markets (EMs) has so far been modest amid lower-than-feared effective tariff levels, S&P Global Ratings expects the indirect impact of tariffs, namely slower global demand and softer investment due to trade policy uncertainty, to become more noticeable in the coming quarters. A weaker US dollar will encourage most EM central banks to continue lowering interest rates, partially cushioning the impact of US trade policy uncertainty, it noted in a release. There are significant downside risks to its growth outlook for EMs. These include the potential for higher oil prices amid the escalation of the conflict in Iran, a weaker-than-expected US economy, more upside pressure on long-term US treasury yields and challenging fiscal dynamics across several EMs. Though the direct impact of US tariffs on emerging markets' growth has so far been modest, S&P Global Ratings expects the indirect impact of tariffs, namely slower global demand and softer investment due to trade policy uncertainty, to be more noticeable in the coming quarters. US demand is a key driver of exports from these markets, and hence, of manufacturing output in those countries. The US-based rating agency has revised up its 2025 gross domestic growth (GDP) growth projections for most EMs from its April update, in large part due to less severe US tariff assumptions than what it had previously incorporated in its projections. The tariff de-escalation between the US and China, consisting of a steep reduction in tariffs between both countries on May 12 and a 90-day pause on reciprocal tariffs, has improved the rating agency's macroeconomic outlook for EMs. However, US trade negotiations with the rest of the world remain fluid, and the uncertainty over US tariff rates will, in the agency's view, temper fixed investment in most EMs. Despite the moderate improvement in its 2025 growth projections for EMs, risks to its outlook are significant, and mostly to the downside. These include a weaker-than-expected US economy, more upside pressure on long-term US treasury yields and challenging fiscal dynamics across several EMs. The indirect impact of shifting US trade policy will likely show up in economic data over several quarters as the year progresses. One key variable will be the development in US demand, as it is a key driver of exports from EMs, and by consequence of manufacturing output in those countries. Fibre2Fashion News Desk (DS)
Fibre2Fashion
a day ago
- Business
- Fibre2Fashion
Tariff-linked volatility not to hit eurozone demand recovery: S&P
S&P Global Ratings does not expect US tariff-related volatility to hamper the ongoing recovery in domestic demand in the eurozone, where growth is expected to remain subdued this year, at about 0.8 per cent. Public spending on infrastructure and defense should boost growth from 2026. Growth will likely accelerate substantially to 1.1 per cent in 2026 and 1.4 per cent in 2027. This acceleration will benefit from strong private sector balance sheets, expansive fiscal policies and lower key interest rates, the rating agency said in a release. It expects core inflation to remain close to the European Central Bank's (ECB's) target. Further rate cuts are unlikely, unless new shocks occur. It has revised its headline inflation forecast for 2026 downward to 1.7 per cent from 1.9 per cent. S&P Global Ratings does not expect US tariff-related volatility to hamper the ongoing recovery in domestic demand in the eurozone, where growth is expected to be subdued in 2025, at 0.8 per cent. Eurozone growth will likely accelerate to 1.1 per cent in 2026 and 1.4 per cent in 2027. Downside risks to growth persist and further rate cuts by the central bank are unlikely, unless new shocks occur. In a severe tariff scenario, it could reduce its eurozone growth forecasts for 2025 and 2026 by 0.4 per cent, with the ECB potentially resuming rate cuts. Downside risks to growth persist. These are primarily linked to US-EU trade negotiations, potential spillovers from financial markets, geopolitical developments and uncertainties about European countries' fiscal plans, which are not concrete. Inflation risks result from upside pressures, such as countertariffs, fiscal stimulus coinciding with labour market bottlenecks, and geopolitical developments impairing oil markets. Downside risks include trade redirection to Europe and another disorderly appreciation of the exchange rate. The number of jobs in the European economy rose by 3,000 in the first quarter this year. Employment reached a new record high, with the unemployment rate at a record low of 6.2 per cent. This was despite a decline in job openings to 2.4 per cent of the labour force. The steady rise in employment since 2023, amid near-stagnant GDP growth, is an anomaly which, S&P Global Ratings expects, will correct at some point. So far, the labour market adjustment appears positive. GDP growth outpaced employment growth at the start of 2025. This reduced the unusually large productivity gap and unit labour costs. The final terms of the tariff deal between the EU and the United States could significantly alter the rating agency's short-term baseline forecasts. The possibility of EU counter-tariffs adds another layer of uncertainty. Fibre2Fashion News Desk (DS)
Deccan Herald
a day ago
- Business
- Deccan Herald
India's banks will lend. Will tycoons borrow?
By Andy MukherjeeThere's plenty of talk about how India's 600-million-strong workforce gives it a unique edge in the US-China spat over trade and technology. But to be the world's next factory, the most-populous nation will need a strong domestic investment data don't show any evidence of that. Nor does the authorities' response inspire confidence. When it comes to large, long-gestation projects, a handful of tycoons will do the heavy-lifting, and it will take more than cheaper borrowing costs to sway their private sector's capacity-expansion intentions have fallen to a three-year low. Banks' exposure to industries that used to be some of their biggest borrowers — roads, power, telecommunications, ports, airports, construction, property builders — is down to 11 per cent of their loan book, half what it was a decade ago. Sanjay Malhotra, the new Reserve Bank of India governor, has thrown the kitchen sink at what is basically a problem of comatose animal spirits. Within six months of his appointment, he slashed the benchmark interest rate by 1 percentage point to 5.5 per cent and flooded the banking system with liquidity. He also eased financing norms for small individual borrowers that rely on microcredit, or loans against gold this will have an indirect effect at best. The real-estate industry may gain as lower mortgage costs entice homebuyers. However, a broader investment-led credit cycle continues to elude. Which is why the RBI has now mandated that banks set aside 1 per cent to 1.25 per cent of their loans to unfinished projects to offset any losses. The requirement drops to 0.4 per cent to 1 per cent when assets start generating cash. These norms are more relaxed than last year's draft guidelines. Those would have raised borrowing costs by asking lenders to make loss provisions of as much 5 per how will funds flow into projects that create new assets, when the bottleneck is not in supply of credit but demand? In October, S&P Global Ratings had predicted an $800 billion tsunami of investment by Indian conglomerates over 10 years, about 40 per cent in new areas like green hydrogen, clean energy, aviation, semiconductors, electric vehicles and data centers. Throw in the infrastructure needed to sustain these industries, and it would automatically mean a whole lot of new projects, and demand for bank financing tied to future cash for that, the tycoons need to be confident. .India's economic activities resilient amidst global uncertainties: RBI local billionaires, Gautam Adani may still be on track to binge on capital expenditure, despite a US Justice Department indictment for alleged involvement in a bribe-for-contract plot. His group would invest $15 billion to $20 billion annually over the next five years, he announced at a shareholders' meeting this week. Rival conglomerates, however, are distracted. Mukesh Ambani has to steady his empire first — and spin off retail and digital services in public markets to unlock value in Reliance Industries Ltd. The 157-year-old Tata Group has to sort out the mess at Air India, the struggling airline at the center of the country's worst passenger jet crash in nearly three decades. Billionaire Sajjan Jindal is embroiled in knotty legal proceedings. The Supreme Court in New Delhi has annulled his JSW Steel Ltd.'s purchase of a bankrupt company — four years after he paid creditors $2.7 billion to acquire the unit that's now 13 per cent of his steel revenue. So much for the four pillars of the national team. The appetite for credit is subdued even among smaller companies. They are still scarred by the bad-loan crisis that erupted a decade ago. The post-pandemic surge in the revenue of engineering and construction firms — a proxy for new asset creation — has ebbed. This fiscal year's government target for new roads is the smallest since 2018, according to India Ratings. Slow-moving irrigation and drinking-water projects are locking up working capital, while margins are getting squeezed in construction of factories and buildings. Contractors are, therefore, cautious about there are heightened global uncertainties. Like their peers elsewhere, business executives are waiting for July 9, when the Trump administration's pause on reciprocal tariffs will end. If Washington and New Delhi are able to pull off a trade deal ahead of the deadline, Indian exports may avoid a 26 per cent tax in their biggest market. That is when bankers in Mumbai could finally start getting calls for higher working-capital funding limits and new term loans. Until then, private credit will rule. Global asset managers, sovereign wealth funds, insurers and banks are actively chasing Indian business owners who are looking either to refinance existing loans, pay for acquisitions, or preserve their control. What the economy needs, however, is credit that helps create new assets. There's littlesign yet of such a virtuous cycle getting started.
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Business Standard
a day ago
- Business
- Business Standard
Indian banks ready to lend, but tycoons show little appetite to borrow
There's plenty of talk about how India's 600-million-strong workforce gives it a unique edge in the US-China spat over trade and technology. But to be the world's next factory, the most-populous nation will need a strong domestic investment impulse. The data don't show any evidence of that. Nor does the authorities' response inspire confidence. When it comes to large, long-gestation projects, a handful of tycoons will do the heavy-lifting, and it will take more than cheaper borrowing costs to sway their decisions. The private sector's capacity-expansion intentions have fallen to a three-year low. Banks' exposure to industries that used to be some of their biggest borrowers — roads, power, telecommunications, ports, airports, construction, property builders — is down to 11 per cent of their loan book, half what it was a decade ago. Sanjay Malhotra, the new Reserve Bank of India governor, has thrown the kitchen sink at what is basically a problem of comatose animal spirits. Within six months of his appointment, he slashed the benchmark interest rate by 1 percentage point to 5.5 per cent and flooded the banking system with liquidity. He also eased financing norms for small individual borrowers that rely on microcredit, or loans against gold jewelry. All this will have an indirect effect at best. The real-estate industry may gain as lower mortgage costs entice homebuyers. However, a broader investment-led credit cycle continues to elude. Which is why the RBI has now mandated that banks set aside 1 per cent to 1.25 per cent of their loans to unfinished projects to offset any losses. The requirement drops to 0.4 per cent to 1 per cent when assets start generating cash. These norms are more relaxed than last year's draft guidelines. Those would have raised borrowing costs by asking lenders to make loss provisions of as much 5 per cent. But how will funds flow into projects that create new assets, when the bottleneck is not in supply of credit but demand? In October, S&P Global Ratings had predicted an $800 billion tsunami of investment by Indian conglomerates over 10 years, about 40 per cent in new areas like green hydrogen, clean energy, aviation, semiconductors, electric vehicles and data centres. Throw in the infrastructure needed to sustain these industries, and it would automatically mean a whole lot of new projects, and demand for bank financing tied to future cash flows. Among local billionaires, Gautam Adani may still be on track to binge on capital expenditure, despite a US Justice Department indictment for alleged involvement in a bribe-for-contract plot. His group would invest $15 billion to $20 billion annually over the next five years, he announced at a shareholders' meeting this week. Rival conglomerates, however, are distracted. Mukesh Ambani has to steady his empire first — and spin off retail and digital services in public markets to unlock value in Reliance Industries Ltd. The 157-year-old Tata Group has to sort out the mess at Air India, the struggling airline at the center of the country's worst passenger jet crash in nearly three decades. Billionaire Sajjan Jindal is embroiled in knotty legal proceedings. The Supreme Court in New Delhi has annulled his JSW Steel Ltd.'s purchase of a bankrupt company — four years after he paid creditors $2.7 billion to acquire the unit that's now 13 per cent of his steel revenue. So much for the four pillars of the national team. The appetite for credit is subdued even among smaller companies. They are still scarred by the bad-loan crisis that erupted a decade ago. The post-pandemic surge in the revenue of engineering and construction firms — a proxy for new asset creation — has ebbed. This fiscal year's government target for new roads is the smallest since 2018, according to India Ratings. Slow-moving irrigation and drinking-water projects are locking up working capital, while margins are getting squeezed in construction of factories and buildings. Contractors are, therefore, cautious about borrowing. Then there are heightened global uncertainties. Like their peers elsewhere, business executives are waiting for July 9, when the Trump administration's pause on reciprocal tariffs will end. If Washington and New Delhi are able to pull off a trade deal ahead of the deadline, Indian exports may avoid a 26 per cent tax in their biggest market. That is when bankers in Mumbai could finally start getting calls for higher working-capital funding limits and new term loans. Until then, private credit will rule. Global asset managers, sovereign wealth funds, insurers and banks are actively chasing Indian business owners who are looking either to refinance existing loans, pay for acquisitions, or preserve their control. What the economy needs, however, is credit that helps create new assets. There's littlesign yet of such a virtuous cycle getting started.
