Chesapeake Utilities Corporation Secures First Investment Grade Credit Rating from Fitch Ratings

Chesapeake Utilities Corporation Achieves Investment Grade Credit Rating

Chesapeake Utilities Corporation (NYSE: CPK) has recently received a significant boost to its financial standing by being awarded its first investment grade credit rating from Fitch Ratings. This achievement marks an important milestone in the company’s efforts to improve its access to financing and support its ongoing growth initiatives.

Rating Details

On March 10, 2025, Fitch Ratings announced that it has assigned a Long-Term Issuer Default Rating (IDR) of BBB+ to Chesapeake Utilities. The rating comes with a Stable outlook and an A- rating for the company's senior unsecured debt. Beth Cooper, the Executive Vice President and Chief Financial Officer of Chesapeake, expressed enthusiasm about this development, stating that securing an investment grade rating will significantly enhance their ability to raise capital efficiently.

Fitch highlighted that Chesapeake Utilities’ longstanding track record in delivering robust investor returns stems from significant capital investment, coupled with prudent management of its capital structure. The predictive assessment of the company’s future capital and earnings growth signals strong expectations for continued expansion and operational strength.

The Impact of the Rating

The implications of this credit rating are far-reaching. Enhanced credit ratings typically result in lower borrowing costs for companies, thereby streamlining the process of financing major projects and expansions. This newfound financial flexibility will assist Chesapeake Utilities in executing its future growth plans effectively.

Moreover, the combination of a diverse set of strong regulated businesses and a commitment to maintaining a solid balance sheet positioned the company favorably in Fitch’s analysis. The solid financial discipline showcased by Chesapeake Utilities is expected to fortify its stability in a competitive market environment.

About Chesapeake Utilities Corporation

Chesapeake Utilities Corporation is a diversified energy delivery company based in the United States, listed on the New York Stock Exchange (NYSE: CPK). The company specializes in sustainable energy solutions, engaging in natural gas transmission and distribution, electricity generation and distribution, as well as propane gas distribution and mobile compressed natural gas utility services.

This achievement not only reflects Chesapeake's financial health but also its dedication to adapting to the evolving energy needs of its customers. With the broadening scope of operations and continuous improvements in efficiency, the company is well-positioned to meet the challenges of the future.

Conclusion

The investment grade credit rating from Fitch is a testament to Chesapeake Utilities Corporation's ongoing commitment to sound financial practices and operational excellence. This recognition unlocks new opportunities for capital generation and strategic growth, ensuring that Chesapeake Utilities remains a significant player in the energy sector.

For further inquiries or detailed information, you may contact:
Beth W. Cooper - Executive Vice President, Chief Financial Officer
Michael D. Galtman - Senior Vice President and Chief Accounting Officer
Noah T. Russell - Assistant Vice President and Assistant Treasurer
Lucia M. Dempsey - Head of Investor Relations
All can be reached using the company's designated contact numbers.