Kiva currently works with 126 microfinancing institutions (MFIs) in 49 countries that act as field partners. These MFIs post profiles of local entrepreneurs in need of a loan on the Kiva site and distribute funds to recipients and collect re-payments.

In a bid to improve risk management and transparency, Moody's Investors Service will now assign initial ratings, pro bono, to 20 of Kiva's MFI field partners, providing an independent assessment of creditworthiness that individuals can consider when selecting an entrepreneur to lend to.

Moody's has also agreed to fund the establishment of a field specialist programme to recruit local microfinance specialists who will help field partners implement best practices in lending and loan servicing. In addition, the company will train Kiva staff, including Moody's field specialists, in credit risk management.

Kiva estimates the field specialist programme will increase the number of MFIs fundraising for loans on its site by more than 50%, to about 180, over the next two years, and expand the average loans per partner by 20% to about $800,000, while also helping to reduce risk and default rates.

Premal Shah, president, Kiva, says: "Moody's is known around the world as a trusted authority on credit, and its contribution to the Kiva network will help us enable our MFI partners to adhere to the highest standards, instilling greater confidence in individuals who want to lend money to make the world a better place."

Founded in 2005, Kiva has facilitated loans from around 550,000 people worth $93 million. The site says the Moody's partnership will help it meet its target of raising $1 billion in microloans by 2015, benefiting an estimated one million people directly and 32 million indirectly.