This clause allows the other party to share your confidential information with credit rating agencies (like Moody's or Standard & Poor's) or other financial rating organizations. It's high-risk because rating agencies publish reports that influence whether lenders will give credit, and those reports may contain details about your business that you want to keep private. The agencies themselves are bound by confidentiality rules, but they publish conclusions and sometimes specific data that can become public knowledge. Once information reaches a rating agency, you lose control over how it's used or interpreted.
Try to negotiate that the other party must get your written permission before sharing with any rating agency, or at minimum require them to ask the agency to redact your name and specific identifying details. If the other party refuses, at least require them to notify you in advance so you know what information is being shared and can prepare for potential public disclosure. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause allows the other party to share your confidential information with credit rating agencies (like Moody's or Standard & Poor's) or other financial rating organizations.
Why should I care about this clause?
It's high-risk because rating agencies publish reports that influence whether lenders will give credit, and those reports may contain details about your business that you want to keep private.
What are my options?
The agencies themselves are bound by confidentiality rules, but they publish conclusions and sometimes specific data that can become public knowledge.
How does this affect small businesses?
Once information reaches a rating agency, you lose control over how it's used or interpreted.