Words / D / Business

derate

verb/ˌdiːˈreɪt/

C2CEFR level
92/100Rarity: very rare
TechnicalRegister

To lower the valuation multiple applied to a company, usually on weaker prospects.

The market derated the whole sector as interest rates climbed and refinancing costs bit.

Similar: downgrade

Topic: Finance in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More business words: Finance