S&P World Scores has raised the worldwide credit standing on OnlineKazFinance (one in all IDF Eurasia’s entities working beneath the Solva model) from ‘CCC+/C’ to ‘B-/B’1.
In line with S&P World Scores, on 8 July 2022, IDF Holding transferred possession of its belongings in Kazakhstan (incl. OnlineKazFinance) to Solva Group – separating its Kazakhstani and Russian belongings1. S&P World Scores states that in consequence, they consider the brand new group and authorized entity will defend OnlineKazFinance from a lot of the monetary and operational dangers regarding the Russian enterprise1.
S&P World Scores has additionally acknowledged that the outlook for OnlineKazFinance is steady due to the advantages OnlineKazFinance could obtain from its deliberate conversion right into a licensed financial institution – which might assist its creditworthiness1.
In line with S&P World Scores, “the rationale behind the credit standing improve was:
- The company restructuring is insulating OnlineKazFinance from dangers regarding its dad or mum firm’s Russian operations.
- The brand new group focuses extra on transitional and SME financing fairly than payday lending.
- The nonbank monetary establishment anchor for Kazakhstan is ‘b’, which is one notch under the anchor for home banks.
- OnlineKazFinance’s goal is to acquire a banking license in 2023, which can be optimistic for its creditworthiness.
- A banking license is more likely to strengthen OnlineKazFinance’s funding and liquidity profile.
- We see OnlineKazFinance’s mixed capital, earnings, and threat place as a impartial ranking issue.”1
