Rookie ratings are determined the same way as other players, with a slight twist. In the case of other players, their ratings are usually calculated from their stats over a three-year period sandwiching the season you start playing (though one-year and five-year calc methods are also choices you can make). In the case of rookies, the calculation can only be based on two years -- the year they start playing and the following year (again assuming the three-year calc method has been chosen). Rookie ratings are more likely to be poorly representative of their real talents -- either too high or too low. Of course, if you use the recalc option for your league, these extremes get brought back into line in future seasons.
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