In a recent Google+ hangout, Google’s John Mueller said that a website can lose its trust from Google so that it does not pass PageRank value anymore:

“With regards to PageRank, I think the main issues that we see there are really if we recognise that this is a site that it doesn’t make any sense to pass any PageRank from. Then, on a site level, we might say, okay, we’re not going to pass any PageRank from here.

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Google’s John Mueller: websites with bad links might not pass PageRank

Google’s John Mueller: websites with bad links might not pass PageRank

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