Caledonia I.S.D. 299, MN (Aa3) benefits from robust reserves and liquidity and a modestly rising enrollment trend. Despite significant concentration in agriculture, the district's local economy is expected to grow due to residential development and commercial development driven by economic activity in Caledonia. The district's total leverage is moderate and debt leverage is likely to decline since the district has no major capital plans and no near-term borrowing plans.

On March 18, 2021, Moody's assigned an initial Aa3 issuer rating and upgraded to Aa3 from A1 the district's outstanding general obligation unlimited tax (GOULT) bonds.