diff --git a/src/Composer/Downloader/FileDownloader.php b/src/Composer/Downloader/FileDownloader.php
index e090c1b6e..da4695f57 100644
--- a/src/Composer/Downloader/FileDownloader.php
+++ b/src/Composer/Downloader/FileDownloader.php
@@ -218,7 +218,8 @@ class FileDownloader implements DownloaderInterface
         $from = $initial->getPrettyVersion();
         $to = $target->getPrettyVersion();
 
-        $this->io->writeError("  - Updating <info>" . $name . "</info> (<comment>" . $from . "</comment> => <comment>" . $to . "</comment>): ", false);
+        $actionName = version_compare($from, $to, '<') ? 'Updating' : 'Downgrading';
+        $this->io->writeError("  - " . $actionName . " <info>" . $name . "</info> (<comment>" . $from . "</comment> => <comment>" . $to . "</comment>): ", false);
 
         $this->remove($initial, $path, false);
         $this->download($target, $path, false);
diff --git a/src/Composer/Downloader/VcsDownloader.php b/src/Composer/Downloader/VcsDownloader.php
index cdc63e5ec..a0ccacdf1 100644
--- a/src/Composer/Downloader/VcsDownloader.php
+++ b/src/Composer/Downloader/VcsDownloader.php
@@ -130,7 +130,8 @@ abstract class VcsDownloader implements DownloaderInterface, ChangeReportInterfa
             $to = $target->getFullPrettyVersion();
         }
 
-        $this->io->writeError("  - Updating <info>" . $name . "</info> (<comment>" . $from . "</comment> => <comment>" . $to . "</comment>): ", false);
+        $actionName = $this->packageCompare($initial, $target, '>') ? 'Downgrading' : 'Updating';
+        $this->io->writeError("  - " . $actionName . " <info>" . $name . "</info> (<comment>" . $from . "</comment> => <comment>" . $to . "</comment>): ", false);
 
         $this->cleanChanges($initial, $path, true);
         $urls = $target->getSourceUrls();
@@ -242,6 +243,23 @@ abstract class VcsDownloader implements DownloaderInterface, ChangeReportInterfa
         }
     }
 
+    /**
+     * Compare two packages. Always false if both versions are references
+     *
+     * @param  PackageInterface $initial
+     * @param  PackageInterface $target
+     * @param  string           $operation
+     * @return bool
+     */
+    protected function packageCompare(PackageInterface $initial, PackageInterface $target, $operation = '<')
+    {
+        if ($initial->getPrettyVersion() == $target->getPrettyVersion()) {
+            return false;
+        }
+
+        return version_compare($initial->getFullPrettyVersion(), $target->getFullPrettyVersion(), $operation);
+    }
+
     /**
      * Guarantee that no changes have been made to the local copy
      *
diff --git a/tests/Composer/Test/Downloader/FileDownloaderTest.php b/tests/Composer/Test/Downloader/FileDownloaderTest.php
index 1c51c2abe..fab0c43d1 100644
--- a/tests/Composer/Test/Downloader/FileDownloaderTest.php
+++ b/tests/Composer/Test/Downloader/FileDownloaderTest.php
@@ -205,4 +205,38 @@ class FileDownloaderTest extends TestCase
             $this->assertContains('checksum verification', $e->getMessage());
         }
     }
+
+    public function testDowngradeShowsAppropriateMessage()
+    {
+        $oldPackage = $this->getMock('Composer\Package\PackageInterface');
+        $oldPackage->expects($this->once())
+            ->method('getPrettyVersion')
+            ->will($this->returnValue('1.0.0'));
+        $oldPackage->expects($this->any())
+            ->method('getDistUrl')
+            ->will($this->returnValue($distUrl = 'http://example.com/script.js'));
+        $oldPackage->expects($this->once())
+            ->method('getDistUrls')
+            ->will($this->returnValue(array($distUrl)));
+
+        $newPackage = $this->getMock('Composer\Package\PackageInterface');
+        $newPackage->expects($this->once())
+            ->method('getPrettyVersion')
+            ->will($this->returnValue('1.2.0'));
+
+        $ioMock = $this->getMock('Composer\IO\IOInterface');
+        $ioMock->expects(($this->at(0)))
+            ->method('writeError')
+            ->with($this->stringContains('Downgrading'));
+
+        $path = $this->getUniqueTmpDirectory();
+        touch($path.'/script.js');
+        $filesystem = $this->getMock('Composer\Util\Filesystem');
+        $filesystem->expects($this->once())
+            ->method('removeDirectory')
+            ->will($this->returnValue(true));
+
+        $downloader = $this->getDownloader($ioMock, null, null, null, null, $filesystem);
+        $downloader->update($newPackage, $oldPackage, $path);
+    }
 }
diff --git a/tests/Composer/Test/Downloader/GitDownloaderTest.php b/tests/Composer/Test/Downloader/GitDownloaderTest.php
index 588d4d2ee..2400fdb56 100644
--- a/tests/Composer/Test/Downloader/GitDownloaderTest.php
+++ b/tests/Composer/Test/Downloader/GitDownloaderTest.php
@@ -596,6 +596,90 @@ composer https://github.com/old/url (push)
         $downloader->update($packageMock, $packageMock, $this->workingDir);
     }
 
+    public function testDowngradeShowsAppropriateMessage()
+    {
+        $oldPackage = $this->getMock('Composer\Package\PackageInterface');
+        $oldPackage->expects($this->any())
+            ->method('getPrettyVersion')
+            ->will($this->returnValue('1.0.0'));
+        $oldPackage->expects($this->any())
+            ->method('getFullPrettyVersion')
+            ->will($this->returnValue('1.0.0'));
+        $oldPackage->expects($this->any())
+            ->method('getSourceReference')
+            ->will($this->returnValue('ref'));
+        $oldPackage->expects($this->any())
+            ->method('getSourceUrls')
+            ->will($this->returnValue(array('/foo/bar', 'https://github.com/composer/composer')));
+
+        $newPackage = $this->getMock('Composer\Package\PackageInterface');
+        $newPackage->expects($this->any())
+            ->method('getSourceReference')
+            ->will($this->returnValue('ref'));
+        $newPackage->expects($this->any())
+            ->method('getSourceUrls')
+            ->will($this->returnValue(array('https://github.com/composer/composer')));
+        $newPackage->expects($this->any())
+            ->method('getPrettyVersion')
+            ->will($this->returnValue('1.2.0'));
+        $newPackage->expects($this->any())
+            ->method('getFullPrettyVersion')
+            ->will($this->returnValue('1.2.0'));
+
+        $processExecutor = $this->getMock('Composer\Util\ProcessExecutor');
+        $processExecutor->expects($this->any())
+            ->method('execute')
+            ->will($this->returnValue(0));
+
+        $ioMock = $this->getMock('Composer\IO\IOInterface');
+        $ioMock->expects(($this->at(0)))
+            ->method('writeError')
+            ->with($this->stringContains('Downgrading'));
+
+        $this->fs->ensureDirectoryExists($this->workingDir.'/.git');
+        $downloader = $this->getDownloaderMock($ioMock, null, $processExecutor);
+        $downloader->update($newPackage, $oldPackage, $this->workingDir);
+    }
+
+    public function testNotUsingDowngradingWithReferences()
+    {
+        $oldPackage = $this->getMock('Composer\Package\PackageInterface');
+        $oldPackage->expects($this->any())
+            ->method('getPrettyVersion')
+            ->will($this->returnValue('ref'));
+        $oldPackage->expects($this->any())
+            ->method('getSourceReference')
+            ->will($this->returnValue('ref'));
+        $oldPackage->expects($this->any())
+            ->method('getSourceUrls')
+            ->will($this->returnValue(array('/foo/bar', 'https://github.com/composer/composer')));
+
+        $newPackage = $this->getMock('Composer\Package\PackageInterface');
+        $newPackage->expects($this->any())
+            ->method('getSourceReference')
+            ->will($this->returnValue('ref'));
+        $newPackage->expects($this->any())
+            ->method('getSourceUrls')
+            ->will($this->returnValue(array('https://github.com/composer/composer')));
+        $newPackage->expects($this->any())
+            ->method('getPrettyVersion')
+            ->will($this->returnValue('ref'));
+
+        $processExecutor = $this->getMock('Composer\Util\ProcessExecutor');
+        $processExecutor->expects($this->any())
+            ->method('execute')
+            ->will($this->returnValue(0));
+
+        $ioMock = $this->getMock('Composer\IO\IOInterface');
+        $ioMock->expects(($this->at(0)))
+            ->method('writeError')
+            ->with($this->stringContains('updating'));
+
+        $this->fs->ensureDirectoryExists($this->workingDir.'/.git');
+        $downloader = $this->getDownloaderMock($ioMock, null, $processExecutor);
+        $downloader->update($newPackage, $oldPackage, $this->workingDir);
+    }
+
     public function testRemove()
     {
         $expectedGitResetCommand = $this->winCompat("cd 'composerPath' && git status --porcelain --untracked-files=no");