Auditing review inflates coupon risk on Popular AT1s

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Auditing review inflates coupon risk on Popular AT1s

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The headquarter of Banco Popular Espanol, photographed in Madrid on 15.04.2013. Photo: Fabian Stratenschulte | Fabian Stratenschulte/DPA/PA Images

Banco Popular Español’s capital levels could fall after it announced this week that it may have to restate its annual accounts for 2016. The impact would raise the risk that the Spanish bank loses the ability to make coupon payments on its additional tier one (AT1) instruments.

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