Fitch Ratings has downgraded the Long-Term Ratings (LT Ratings) assigned to the Series W-7 Variable Rate Demand Preferred Shares (VRDP Shares) issued by Invesco Dynamic Credit Opportunities Fund (VTA) and Invesco Senior Income Trust (VVR) to 'A' from 'AA'.

The ratings are removed from Rating Watch Negative (RWN) and removed from Under Criteria Observation (UCO).

The Downgrades are driven by changes to Fitch's rating criteria for closed-end funds (CEFs), rather than by any fundamental changes to the fund's credit profile.

Additionally, the Short-Term Ratings (ST Ratings) of the VRDP Shares have been affirmed at 'F1'.

KEY RATING DRIVERS

The Downgrades follow the publication on Dec. 4, 2020 of Fitch's updated 'Closed-End Funds and Market Value Structures Rating Criteria' and primarily reflect the following criteria changes:

No assets can be eligible to receive credit at the 'AAA' rating level. Effectively, this institutes a rating cap on the ratings of obligations backed by market value exposures, including CEFs, under the criteria report.

Only certain assets can be eligible for credit at the 'AA' rating level. Assets that will continue to receive credit at the 'AA' rating level include:

Cash; Certain high-quality government securities;

Certain high-quality municipal and corporate bonds.

Recalibration of applicable discount factors (DFs) at each rating level.

The LT Ratings remain supported by:

Suf?cient asset coverage provided to the preferred shares as calculated per the funds' overcollateralization (OC) tests at the 'A' rating level;

The structural protections afforded by mandatory collateral maintenance and deleveraging provisions in the event of asset coverage declines;

The legal and regulatory parameters that govern the funds' operations;

The capabilities of Invesco Advisers, Inc. as manager.

The ST Ratings primarily re?ect:

The credit strength of the VRDP Shares' liquidity provider Barclays Bank plc (A+/F1);

The terms and conditions of the VRDP Shares' purchase agreements.

FUND PROFILES

Invesco Dynamic Credit Opportunities Fund is a diversi?ed, closed-end management investment company. The fund commenced investment operations on June 26, 2007 and is registered under the Investment Company Act of 1940 (the 1940 Act). The fund's primary investment objective is to seek a high level of current income with a secondary objective of capital appreciation. Under normal market conditions, the fund will invest at least 80% of its net assets in any combination of senior secured ?oating-rate and ?xed-rate loans, and second-lien or other subordinated or unsecured ?oating-rate and ?xed-rate loans or debt.

The fund also may invest up to 20% of its assets in structured products, including collateralized debt and loan obligations.

Invesco Senior Income Trust is a diversi?ed, closed-end management investment company. The fund commenced investment operations on June 23, 1998 and is registered under the 1940 Act. The fund's investment objective is to provide a high level of current income, consistent with preservation of capital. Under normal market conditions the fund pursues its objective by investing at least 80% of its total assets in senior secured loans.

ASSET COVERAGE AND EFFECTIVE LEVERAGE

As of the review date, each fund's asset coverage ratio for the preferred shares, as calculated in accordance with the 'A' Fitch total and net overcollateralization tests (Fitch OC Tests) outlined in Fitch's criteria, was in excess of 100%. This is the minimum threshold required under the terms of the preferred shares for each fund.

As of the review date, each fund's asset coverage ratio for total outstanding preferred shares, as calculated in accordance with the Investment Company Act of 1940, was in excess of the minimum asset coverage of 225% required by each fund's governing documents. As of the same date, each fund's effective leverage ratio was below the maximum limit allowed by the governing documents for the applicable VRDP shares.

Per the structural protections described below, the funds are required to cure any breaches to the Fitch OC Tests, the minimum asset coverage ratio or the effective leverage ratio.

STRUCTURAL PROTECTIONS

In the event of asset coverage declines, the funds' governing documents require the funds to reduce leverage in order to restore compliance with the applicable asset coverage test. Failure to cure a breach of the minimum asset coverage requirement by the allotted cure date results in mandatory redemption of suf?cient preferred shares to restore compliance. The time allowed for the funds to restore compliance is consistent with Fitch's criteria guideline.

A breach of the effective leverage ratio is a breach of the fee agreement with the liquidity provider, and, at the option of the liquidity provider, may result in a mandatory tender of VRDP Shares of the applicable series for remarketing (see VRDP Purchase Obligation section below for additional details). However, in the event of a breach, Fitch expects the fund to redeem a suf?cient number of preferred shares in order to restore compliance. The allotted time to restore compliance to the effective leverage ratio test is consistent with Fitch's criteria guideline.

VRDP PURCHASE OBLIGATION

The ST Ratings assigned to the VRDP Shares of each applicable series are directly linked to the short-term creditworthiness of the associated liquidity provider. The VRDP Shares of each applicable series are supported by a purchase agreement to ensure full and timely repayment of all tendered VRDP Shares plus any accumulated and unpaid dividends. The purchase agreement is unconditional and irrevocable.

The VRDP purchase agreement requires the liquidity provider to purchase all VRDP Shares of the applicable series tendered for sale that were not successfully remarketed. The liquidity provider must also purchase all outstanding VRDP Shares of the applicable series if the fund has not obtained an alternate purchase agreement prior to the termination of the purchase agreement being replaced or following the Downgrade of the liquidity provider's rating below 'F2' (or its equivalent).

The liquidity provider's role under the fee agreement relating to the purchase obligation for each applicable series has a scheduled termination date. Prior to the scheduled termination date, the fee agreement can be extended to a new scheduled termination date, or a new liquidity provider may be selected.

SUBORDINATION RISK

Certain terms exist in the creditor agreements governing the funds' credit facilities that may restrict or delay payments to the VRDP shareholders if there were to be an Event of Default (EOD) under the creditor agreement. EOD under the creditor agreements include failure to maintain certain asset coverage ratios at the senior debt level and borrowing base levels.

Fitch believes the likelihood of any such payment delay to the preferred shareholders is remote. Under the terms of the creditor agreements, the fund is provided cure periods for certain covenants to resolve any breaches prior to the declaration of an EOD. Additionally, the VRDP Shares will account for a material portion of the funds' total leverage that provides additional cushion in relation to asset coverage requirements at the senior debt level. Fitch is also comfortable with the fund manager's ability to manage leverage in such a way as to avoid an EOD. However, if an EOD were to occur, Fitch believes it would be resolved in a timely manner.

INVESTMENT MANAGER

Invesco Advisers, Inc., an indirect, wholly owned subsidiary of Invesco Ltd., is the funds' adviser. Invesco Senior Secured Management, Inc., an indirect, wholly owned subsidiary of Invesco Ltd., is the funds' sub-adviser and is responsible for the funds' overall investment strategies and their implementation. Invesco Ltd. had approximately $1,349.9 billion of assets under management as of Dec. 31, 2020.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive rating action/upgrade:

An Upgrade is not currently envisioned as the funds invest largely in securities that are ineligible for credit at the 'AA' rating level.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

The ratings may be sensitive to material changes in the leverage composition, portfolio credit quality or market risk of the funds' assets, as described above. A material adverse deviation from Fitch guidelines for any key rating driver could cause ratings to be downgraded by Fitch;

The ratings could be downgraded if asset coverage cushions erode as a result of market volatility, or if Fitch believes the assets the fund invests in are unlikely to retain suf?cient liquidity and price stability at the current rating stress levels;

The ST Ratings assigned to the VRDP Shares may also be sensitive to changes in the ?nancial condition of the liquidity provider. A downgrade of the liquidity provider to 'F2' would result in a downgrade of the ST Ratings of the VRDP shares to 'F2' absent other mitigants. A Downgrade below 'F2', on the other hand, would not necessarily result in a Downgrade of the ST rating of the VRDP shares, given the features in the transactions that would result in a mandatory tender of the VRDP shares for remarketing, or purchase by the liquidity provider in the event of a failed remarketing.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit [https://www.fitchratings.com/site/re/10111579]

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

Rating ActionsENTITY/DEBT	RATING		PRIOR

Invesco Dynamic Credit Opportunities Fund

46132R708

LT	A 	Downgrade		AA

46132R708

ST	F1 	Affirmed		F1

Invesco Senior Income Trust

46131H842

LT	A 	Downgrade		AA

46131H842

ST	F1 	Affirmed		F1

View additional rating details

Additional information is available on www.fitchratings.com

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