Oman, one of the smallest economies in the Gulf Cooperation Council, faces economic risks due to its continued dependence on oil revenues, even though its government balance sheet is robust, Moody’s said on Monday. “Broadly, we see Oman as having a much stronger government balance sheet and external liquidity position than Bahrain [the next smallest GCC economy],” the rating agency said in a statement. “Yet bond yields and credit default swaps already suggest even higher credit risks in Oman than in Bahrain, and Oman’s economy relies more heavily on the oil sector.” Moody’s in March revised its outlook on Oman to negative from stable and affirmed its ‘BB/B’ credit rating - 'junk' status. In a subsequent report in April, Moody’s said Oman could face external vulnerability as wide fiscal deficits will contribute to wide current account deficits, increasing Oman’s dependence on steady inflows of external financing.