When is a grade capped despite a good score?
Using MaegimLast updated
A guardrail caps the grade regardless of the score whenever certain facts are confirmed by disclosure. Specifically: ① an adverse audit opinion or a disclaimer of opinion caps the grade at F; ② a qualified audit opinion, designation as an administrative issue, capital impairment, or a disclosed embezzlement/breach-of-trust allegation within the past year caps it at D; ③ designation as an investment-caution issue caps it at C. Stocks under a trading halt have their grade withheld entirely.
These caps are not Maegim's subjective judgment but a mechanical reflection of facts disclosed by the exchange and auditors. They exist so that serious warning signs invisible in the financial figures alone are never masked by a good score, and they lift automatically at the next run once the underlying fact is resolved. Capped stocks display the reason on their page.
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