What is a word for making something seem not as bad as it actually is?

Some examples:

• Instead of admitting that I'm an alcoholic, I just say I had one too many drinks.
• Instead of the bank admitting that it has lots of loans that are in arrears and are likely to default, it only says that it has underperforming loans.
• Instead of admitting that they overeat, they simply claim that they have a strong appetite.

Basically, I'm after a word for when a phrase is used that is not really a lie, but doesn't give the whole truth to make it sound more positive than it actually is. Usually when something should be dealt with, but it's kind of swept under the carpet by the misleading phrase.

Solution 1:

Downplay

M-W: to make (something) seem smaller or less important

dictionary.com: to treat or speak of (something) so as to reduce emphasis on its importance, value, strength, etc.: The press has downplayed the president's role in the negotiations.

Solution 2:

Sugarcoat - to make (something difficult or distasteful) appear more pleasant or acceptable.

You can't sugarcoat your alcoholism this time MonkeyZeus, I'm taking the kids and leaving you! Also, what parent in their right mind would name their child with a name as awful as yours?!