One of my link exchange partners has dropped to a PR0 this update. The site was previously a PR4. It's a quality site and I can't see any valid reason why the PR would drop so significantly. They are not selling links to piss of google so I'm thinking it's just a glitch. The PR has dropped on all pages, not just the homepage. Would you take the risk and maintain the link exchange considering they are sending traffic to my site on a daily basis, or just drop the link exchange?
I think you should continue coz ranking and pr both are different things and as you said you are still getting traffic from this site so it mean that site still ranking on there keywords.....
Yes i agree with Aryans, if they are sending the traffic; don't worry. PR is not that important, the only thing that matters is traffic. If you have exchanged the link solely for getting backlink, then it is different but as you said you are still getting traffic from that site, i would suggest you to continue with this. --Sar
I suggest you to keep doing link-exchange with them.. You are getting traffic by them in daily-basis; why should you miss those? PR not going to affect your site ranking nor it not going to give more traffic even though you are having more PR - so it always better for you to do link-exchange with them to get more traffic..!
Because if I link to a "bad neighborhood" I can lose all my search traffic, not just the traffic from this link partner.
a site will not lose its ranking due to bad neighborhood. maybe they lost their backlinks, or most of it. if thats a quality site and still gets traffic or show on search engine, and if thats a related site, then i would not worry too much about the PR