How would a rating agency? The options traders have money on the line; the rating agency is betting its reputation--which means it can exploit mispricings in th

How would a rating agency? The options traders have money on the line; the rating agency is betting its reputation--which means it can exploit mispricings in the reputational marketplace by doing a bad job and hiring good PR people and lobbyists. This is the purest, most cynical way to explain ratings agencies in general.