Guild rating for GvG and personal rating for Hero Battles is changed only by playing automatic rated matches and automated tournaments. The higher the opposing guild or player's rating compared to yours, the higher your reward for winning and the lower your penalty for losing.
Rating determines your rank on the guild and Hero Battles ladders.
The mechanics of rating changes
Guild Wars uses the Elo rating system to calculate ratings. In this system, the probability of winning is calculated for each guild or player, determined by the rating difference between the opponents before the match. The higher this probability of winning, the less rating is gained by actually winning the match.
The formula for the winning probability is , where x is the opposing guild or player's rating and y is the guild or player's rating for whom the rating change is being calculated.
With this probability, the actual rating change can be calculated by R = y + K * (t – p) where R is the new rating; K is 5 during non-tournament play, 30 during daily tournament play, and 50 during monthly tournament play; t is 1 for a win or 0 for a loss; and p is the guild's win probability.