Standard & Poor's said the credit quality of shipping companies across Southeast Asia has suffered in the last two years, with most companies in the "weak to vulnerable" range, compared with "fair to weak" previously. "Earnings vulnerability and aggressive capital structures, characterized by modest and volatile cash flows and high debt levels, have strained the ability of many companies to meet financial obligations in a timely manner," shipping analyst Ee-Lin Tan said. Tan said underpinning the deterioration were limited geographic diversity and exposure to regional trade flows, intense price-based competition led by lower cargo traffic in certain trade routes and excess capacity within several shipping segments.