a downgrade in the company's stock prices
a singing career on the downgrade
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'downgrade.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
1857
The restaurant was downgraded from three to two stars.
She didn't intend to downgrade the importance of her colleague's work.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'downgrade.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
1930
A downgrade is an announcement of an analyst lowering their opinion on the desirability of a company as an investment. It can apply to either debt or equity.
Downgrades can come from a variety of sources: brokerage firms, research firms, ratings agencies, etc.
Downgrades of equities can happen for several reasons, but usually they center on industry, regulatory, technology, or management changes that the analyst feels will hinder the issuer's future performance. These factors create fundamental shifts in the analyst's outlook, making the security appear either fully valued or overvalued.
Debt downgrades generally come from ratings agencies such as Moody's or Standard & Poor's (S&P). A downgrade from one of them is a major signal that an issuer is more likely to default on its debt. If a bond is downgraded to a level below investment grade (aka, "junk"), there is often a serious sell off of those bonds, because most institutional investors are forbidden from owning junk bonds.
Ratings have a large influence on the demand of a security. Downgrades (or even rumors of downgrades) tell investors that a security is now believed to be riskier, which may have a negative impact on the security's price. In turn, downgrades often lead to less trading activity and lowered liquidity.
: to give (someone or something) a lower rank or grade
: to cause (someone or something) to be thought of as less valuable, important, etc.
See words that rhyme with downgrade Thesaurus: All synonyms and antonyms for downgrade Spanish Central: Translation of downgrade Nglish: Translation of downgrade for Spanish speakers Britannica English: Translation of downgrade for Arabic speakers
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