Transmitting Usernames and Passwords (Office 365)

Can you tell me if usernames and password are transmitted in clear text when actions such as the "Start Workflow" and all the Office 365 actions execute?  I don't quite understand the notes in the documentation when it is mentioned that start workflow may not be bounded by the tenant.  Perhaps someone can provide some clarification:

Taken from: 

"This action is not fully bounded by your Office 365 tenancy. It either calls outside of the tenant or executes on servers potentially running outside your region. Before implementing, consider performance and regional concerns where digital boundaries are an issue."



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Re: Transmitting Usernames and Passwords (Office 365)

Hmm, I know that storage of credentials in O365 actions has been a persistent question I've seen around (here:  as at least one example). I'm interested to see how these creds are handled in your scenario. Perhaps ‌ could offer some insight or point us to someone who can.