¶ Ratings are “a measure of risk on a buy-and-hold basis and say nothing about the pricing volatility of an investment,” said Gareth Levington, a senior analyst at Moody’s in London. “The market level isn’t hugely relevant for the rating.”

¶ The rating firms help borrowers structure debt securities in a way that will get the highest possible credit rankings while allowing managers of the securities the most profit.

¶ Moody’s earned $884 million last year, or 43 percent of total revenue, from rating so-called structured notes.

Bloomberg, re S&P/Moody’s Ratings of CPDOs (2007)

UPDATE: Bloomberg, Moody’s, S&P Employees Doubted Ratings (2008)