Kleinwort Benson has been placed on review for downgrade by ratings agency Moody's, as its own business troubles combine with a "highly competitive" trading environment for private banks.

In a statement yesterday, Moody's said it was considering downgrading Kleinwort's Baa2 long-term bank deposit ratings, its Prime-2 short-term ratings and the C-/baa2 standalone credit assessments of its two business units, Kleinwort Benson Bank and Kleinwort Benson Channel Islands.