The Collaborative International Dictionary of English v.0.48:

Degrade \De*grade"\, v. t. [imp. & p. p. Degraded; p. pr. &
   vb. n. Degrading.] [F. d['e]grader, LL. degradare, fr. L.
   de- + gradus step, degree. See Grade, and cf. Degree.]
   1. To reduce from a higher to a lower rank or degree; to
      lower in rank; to deprive of office or dignity; to strip
      of honors; as, to degrade a nobleman, or a general
      officer.
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            Prynne was sentenced by the Star Chamber Court to be
            degraded from the bar.                --Palfrey.
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   2. To reduce in estimation, character, or reputation; to
      lessen the value of; to lower the physical, moral, or
      intellectual character of; to debase; to bring shame or
      contempt upon; to disgrace; as, vice degrades a man.
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            O miserable mankind, to what fall
            Degraded, to what wretched state reserved! --Milton.
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            Yet time ennobles or degrades each line. --Pope.
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            Her pride . . . struggled hard against this
            degrading passion.                    --Macaulay.
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   3. (Geol.) To reduce in altitude or magnitude, as hills and
      mountains; to wear down.

   Syn: To abase; demean; lower; reduce. See Abase.
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The Collaborative International Dictionary of English v.0.48:

Degraded \De*grad"ed\, a.
   1. Reduced in rank, character, or reputation; debased;
      sunken; low; base.
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            The Netherlands . . . were reduced practically to a
            very degraded condition.              --Motley.
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   2. (Biol.) Having the typical characters or organs in a
      partially developed condition, or lacking certain parts.
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            Some families of plants are degraded dicotyledons.
                                                  --Dana.
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   3. [Cf. F. degr['e] step.] (Her.) Having steps; -- said of a
      cross each of whose extremities finishes in steps growing
      larger as they leave the center; -- termed also on
      degrees.
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WordNet (r) 3.0 (2006):

degraded
    adj 1: unrestrained by convention or morality; "Congreve draws a
           debauched aristocratic society"; "deplorably dissipated
           and degraded"; "riotous living"; "fast women" [syn:
           debauched, degenerate, degraded, dissipated,
           dissolute, libertine, profligate, riotous,
           fast]
    2: lowered in value; "the dollar is low"; "a debased currency"
       [syn: debased, devalued, degraded]