IDF Eurasia Kazakhstan is assigned international credit rating ‘B’ by S&P Global Ratings

LLP OnlineKazFinance, one of IDF Eurasia’s entities (operating under the Solva brand), has been assigned an international credit rating of ‘B’ by S&P Global Ratings.

"Solva is the flagship in financial and technological transformation among MFIs. High operational efficiency, diversification of customer acquisition channels, and a fully digital underwriting process contributed to obtaining a stable credit rating, which is higher than those of most traditional banks in Kazakhstan. In addition to Solva's solid financial performance, a critical element in assessing a credit rating is the maturity of the regulatory environment. Mandatory licensing for MFIs and biometric identification of the borrowers, introduced by the regulator in 2021, have certainly facilitated the stability of the industry, and helped to improve consumer protection and to promote the principles of responsible lending, which we adhere to at IDF Eurasia."

Boris Batin, a co-founder of IDF Eurasia Group

S&P Global Ratings outlines that Solva’s credit rating reflects the rating agency’s view on the creditworthiness of the entire IDF Eurasia Group1. Furthermore, it reports that Solva is expected to remain an integral part of the Group, accounting for around 40% of its total loan portfolio and generating around 30-35% of the Group’s revenue. This rating is based on expectations of SMEs and consumer lending growth in Kazakhstan over the next two years, an increase in the Group’s loan origination volumes, and development of collection business together with Group’s consolidated debt to EBITDA ratio of 3x-4x and EBITDA margins of over 30%. The stable outlook is based on the expectation that the Group will maintain sufficient capital and liquidity reserves and will strengthen its competitive position through optimization of funding costs.

"We executed our first successful issuance of tenge-denominated bonds on KASE exactly one year ago; the issue was a debut not only for us but also for the entire microfinance industry in Kazakhstan. Over the past year, our loan portfolio has grown by 40%, we have successfully entered the SME lending market and more than 10 000 entrepreneurs across Kazakhstan have become our clients. We are constantly strengthening our team with young specialists and managers with profound banking expertise. Our flexible lending terms and consumer-friendly and accessible micro-loans contribute to steady growth in demand for Solva's products. In such circumstances, the S&P credit rating confirms the sustainability of Solva's fintech business model and allows us to move towards diversification and cheaper funding sources, including new institutional investors."

Konstantin Barabanov, Head of IDF Eurasia in Kazakhstan

According to the Group, Solva, as part of IDF Eurasia Group, maintained its financial stability during the COVID pandemic, largely due to the Group’s digital products being available online. It further stated that IDF Eurasia’s revenue growth rate of 90% in the first half of 2021 (134% YoY) provides for further increase in lending activities in Russia and Kazakhstan while developing its collection business from a relatively low base. In addition, new loans will be financed focusing on debt capital markets and bank credit facilities. The Group also stated that its leverage ratios at the Group level are expected to remain stable over the next 12 months, with a debt to EBITDA ratio of 3.5x-3.7x.

About IDF Eurasia

IDF Eurasia is the market leader in online lending in Russia and Kazakhstan. The company uses state-of-the-art technology in its decision-making system, adheres to principles of responsible lending, and contributes to the sustainable financial development of society. IDF Eurasia has been recognized as the most innovative financial company with the Innovation Time Award. Solva has entered the list of the top five major MFIs according to the National Bank of Kazakhstan.


  1. S&P Global Ratings Research Update, 31 August 2021: Kazakhstan-Based OnlineKazFinance, Operating Under The Solva Brand, Assigned ‘B/B’ Ratings; Outlook Stable


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