Moody's and Kiva at CGI: Rating Credit Risks for a Hand in the Future of Micro-lending Banks

While it's a thrill for me to help engage companies in strategic philanthropy, corporate social responsibility (CSR), skilled volunteering, and other forms of giving and service, I've always believed that corporate initiatives are only sustainable if there's a solid business case to be made. So after my initial excitement about a terrific new corporate-nonprofit partnership, my next question is: "How did you sell it to the board?"

At last week's CGI, I was delighted to meet with Premal Shah, President and CEO of Kiva, the world's first person-to-person micro-lending website, established in 2005. Kiva helps alleviate poverty by raising $1 million a week in small loans (many are $25) to invest in micro-businesses in Asia, Africa, South America, and Eastern Europe. Shah explained that corporate partnerships are essential to Kiva's success.

Shah described Kiva's new partnership with Moody's that was announced on stage at CGI. Moody's will do three things:

  • "Moody's Investors Services will assign initial ratings, pro bono, to 20 of Kiva's MFI [microfinance institution] Field Partners, providing an independent assessment of creditworthiness that individuals can consider when selecting an entrepreneur to lend to."
  • "Moody's Foundation will fund the establishment of a Moody's Field Specialist Program to recruit local microfinance specialists who will help MFI Field Partners implement best practices in lending and loan servicing, and to identify new MFI Field Partners."
  • "Moody's Analytics will train Kiva staff, including Moody's Field Specialists, in credit risk management."

Kiva-Moody's relationship is potentially game-changing for microfinance. Why? Access to capital. "We will provide MFIs with the opportunity to access global markets, by bringing even greater analytical rigor, transparency, and information to the Kiva marketplace," according to Rob Sherman, Vice President, Communications, Moody's. "We will broaden the pool of investors interested in microfinance because they will better understand the credit risk," says Fran Laserson, President, Moody's Foundation.

So, what is the business case for Moody's? "The double bottom line," says Laserson, "social responsibility and responsibility to shareholders." And how is this good for business? "By offering ratings to MFIs which will evolve and grow into deposit-taking institutions—banks that will become regulated—Moody's is developing a relationship with them now through this initiative."

Another synergistic opportunity for both Kiva and Moody's was in the creation of the project itself. At the outset, Moody's asked Kiva, "What are your most pressing needs around the credit risk?" In developing the Kiva-Moody's initiative, Moody's wanted to apply their unique expertise and engage their talented people. "At the table to mold this partnership were Moody's senior people in corporate development, global banking, legal, business planning, philanthropy, and ratings administrators," says Laserson.

As with other sustainable and high-impact CSR programs I've described in this blog, the Kiva-Moody's partnership has all the hallmarks of excellence: alignment with company goals and objectives, research and metrics to demonstrate need and progress, partnerships and alliances, employee engagement, and leadership from the top.

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  • Dr. H.R. Goetting

    Is John Wiley&
    Sons giving
    Corporate Social Responsibility a bloody kick in the butt?



    Is John Wiley&
    Sons a traitor to its academic customers, because academic publishing
    depends, to a great extent, on trust?



    Is John Wiley& Sons
    in Violation of the "Safe
    Harbor" Statement
    under the Private Securities Litigation Reform Act of 1995?

    Yes, Moody's no-credit-no-problems-rating
    chairman and schemer Raymond W. McDaniel covers up the
    mess on the board of directors at John Wiley
    & Sons.


    Is John Wiley &
    Sons guilty of
    breaking the ‘fair disclosure’ rules requiring the
    dissemination of important information to all investors?



    Is John Wiley&
    Sons in
    violation the Sarbanes-Oxley Corporate Reform Act of 2002, which requires John
    Wiley & Sons to establish
    procedures for hearing whistleblower complaints?



    John Wiley & Sons’ Corporate Social Responsibility is Written with
    Animal Blood: Read the Oral Pulp History of Chairman Peter Booth Wiley


    While You are
    reading the John Wiley & Sons Konfidential piece, You can disagree with my often hilarious
    comments in a decent Teutonic accent of authority to the Chief‘s shocking
    interview answers, but You can‘t put a benign face on the Wiley-phenomenon.

    I have been working for eighteen months in Chief Peter Booth Wiley’s archive,
    which was for me as if visiting a U.S. war-of-aggression zone where
    sexual degradation, torture and rape flourish. Instead of forcing me to lick the Liberty
    Bell, my
    hellish work at Wiley’s archive was interrupted by the Chief’s disgusting demonstrations
    of affection: his ungentlemanly hands fondled among my pink boxer-shorts as the
    predator whispered, mouth foaming, a scary “I love you“ into my ears.

    What You are about
    to learn is incredible. Unthinkable. Based on statements by Chief perpetrator Peter Booth Wiley, this
    shockumentary will cause upheavals of staggering proportions in the classrooms
    and laboratories at universities. It penetrates the criminal mind of the wily
    Wiley clan who, according to their mediocre archive, suffered from far more
    than just a stock-based
    kleptomania problem. "My daddy’s branch of the family
    was so far removed from the line of inheritance [at university supplier and original
    publishing family Wiley] that all he got was the name Wiley" said the
    privileged son of an unprivileged son. Tempted by his habitual weakness, ’Daddy Wiley’
    over the university supplier by out-maneuvering former Wiley stockholders - and
    grabbing their shares. He climbed
    from lumpen-proletarian
    rags to riches in less than a decade.

    The Wiley country-bums from a bad place were just very
    distant relatives to the New Yorker publishing family Wiley. According to the
    Chief, the reason why the bootlegger Wiley clan was able to keep control of the
    publisher Wiley lies in the bootlegger family’s
    “small gene pool”. Or shall we say the bootlegger Wiley clan is the unlucky
    winner in the genetic lottery for an extremely “small gene pool”? Although the
    Chief never mentioned incest for the “small gene pool” of his family, he didn’t
    rule it out.

    But that is not all: "My ancestors
    were British royals" said the uncrowned king of asses and pointed to some
    drawings of ‘royals’ on the walls of his S.F. home. The aging Chief wants out of
    his criminal underclass identity. What he wants is a fake entrée into
    aristocracy and identify with royals. Or did Chief Peter Booth Wiley mistake his
    bootlegger family tree with the restroom doors in Disneyland royally marked ‘Prince‘
    and ‘Princess‘?

    On this day I left
    the Chief‘s home feeling like a royalist. Long live King Wiley! Reporting from the
    king’s palace restrooms as the thrilled royal analyst, Yours Truly!

    Chief-wannabe-royal was dragged up by rude, unpleasant, psychopathic parents of criminal origins - so let’s just say faux
    royals! Peter
    Booth Wiley might be as perverse as some British
    royals, but this is as far as royal British relations go. Maybe he had a royal
    syphilis? Signaling the depth of
    his longings for a blue-blooded ancestry, he scratched his from blue
    hemorrhoids ridden royal rear end with was a long sigh of relief again and
    again and again!

    Anyone can be blue
    blooded in America. That’s America’s exceptionalism!

    With serious
    educational deficits, Chief
    Booth Wiley and his siblings are not the cream of
    educated society. Their stupidity is not staged! One of the siblings is a
    degenerated idiot and was kicked out from college, because failure for him is not
    only an option but a habit.
    He is unable to compose a comprehensible sentence. Befitting for a member on
    the board of directors at John Wiley & Sons, his writing skills are at the low end of public-school curriculum; his
    trembling hand produces scores of misspellings – unless, for example, he signs
    with an X. Childless
    Brother/Director Wiley was eligible for America’s Eugenic Board sterilization
    program, where genetic engineering was applied between the years 1933 [when
    Hitler came to power in Germany; he abdicated in 1945] and 1977. America’s
    ‘Human Betterment League’ of wealthy businessmen such as ‘Daddy Wiley’
    financed the eugenics program and 70 percent of the sterilizations took place
    after 1945.

    The other two fertile academic
    Wunderkinder of rather low mentality were left unfairly behind by "rising
    academic standards" and graduated only because of the generous donations
    made by their "Daddy". In short, they are all blissfully detached
    from academic standards.

    Let’s dig a little
    deeper into
    the oral pulp history of the born-again but very obnoxious Chief Peter Booth Wiley, scrupulously
    researched by Yours Truly and with gory narrations of America’s
    gritty-secret side!

    Chief Peter Booth Wiley made his money the
    old-fashioned way - he inherited it. Having all that time on his hand, Gestapo-face Peter Booth Wiley is about to team up with imprisoned
    ex-football star O.J. Simpson to write their tandem-biography ‘If we did it’. In his book ‘If
    I did it’, Simpson explains how he would have gone
    about murdering his ex-wife and her boyfriend, if he would have been the madman
    killer. In a package deal, the little-league author Peter Booth Wiley and the cutting edge ex-football player
    O.J. Simpson will invite, in a nod to the Humane Society [an animal protection
    organization], dog-man and football player Michael Vick to contribute one
    chapter on his pit-bull fighting operations. Why? Recipes and cookbooks have
    long been a favorite of the bootlegger family Wiley and that is why Chief Peter Booth Wiley dons a bloodied professional chef hat and
    presents a whole chapter with recipes for barbecued dog meat in the
    tandem-biography. A real pig’s breakfast!

    Chief Peter Booth Wiley is a blood-sport lover and has picked up
    that favorite dish of him in the cock-fighting circles of California’s Anderson Valley, where the landed
    cock-man finds entertainment and where grilled dog flesh is served to fill
    hungry spectator’s snouts. The son of an arsehole was
    obsessed with "watching the dogs mate" before they were slaughtered
    and grilled for human consumption. Did the Bible quoting poster-boy for
    American fascism use the skinned and blood drained dogs for sacrifices and
    worshipping before barbequing and roasting the dog meat? It makes me wonder if Chief Peter Booth Wiley is
    dancing in a voodoo ritual around the dead dog carcasses.

    "I love to go to cockfights, it’s a bloody show". What Chief Peter Booth Wiley loves compares for other people to child
    pornography – it is illegal. "It’s a freaking slaughter". Is the torture of animals - the terrible
    suffering rooster, bitten, ripped, torn and screaming in pain - sexually
    stimulating for the Chief? "It has an untamed artistic quality to
    it". This was not meant as a joke by Chief-Chicken-Shit!

    The Chief’s
    rank underwear is spotted with urine and shit, just like the feathers of a
    frightened fighting cock. In the illegal subculture of cockfights bets on
    favorite cocks can be placed and Chief Peter Booth Wiley likes to bet money for animal blood.
    Imagine all the eyeballs the authors-trio will get among the dog- and
    cock-fighting crowds for their literary contribution ‘Cockfighting
    for Dummies’. The academically-challenged trio can
    certainly expect to hear some ringing cash registers from the sale of their
    reference book, which is going to leave nobody wiser.