Last week’s reports that flawed practices at major Wall Street ratings firms played a significant role in the mortgage meltdown represent a serious branding crisis for firms whose business models and reputations are built on a foundation of trust and objectivity.

The SEC’s findings – chief among them are revelations that agencies put profits ahead of reliable ratings by failing to respond to drastic workload increases with like increases in staffing and training – call into question the credibility that is the heart of these companies.

As such, the time has come for ratings agencies to make a sacrifice – and given the alternatives, their profits are the right place to start.

First, ratings agencies need to increase the number of analysts so that the analyst-per-issue or security ratio goes down. And they need to bring in independent overseers with impeccable reputations – such as a former SEC Chairman or Commissioner – to ensure the highest standards of objectivity are being met.

Such changes will almost certainly affect profit margin, but firms need to view added costs as investments in their reputations and their futures. This is not a case of form over substance. In fact, it’s quite the opposite.

And second, ratings agencies need to be publicizing steps taken to enhance business practices at every turn. No matter the venue – newspapers, radio, TV, or the Internet – word needs to spread, and spread quickly, if the damage done is to be contained.

Sometimes, a brand built over years of faithful service requires sacrifice to remain a pinnacle of excellence. The time has come for a sacrifice in the ratings industry. More often than not, industries in crisis find that the short-term pain of temporary profit loss is far outweighed by the long-term gains in credibility and trust that pave the way back to prominence.