July 22 (Reuters) -
* S&P SAYS STABLE OUTLOOK REFLECTS VIEW THAT CANADA'S HIGH ECONOMIC DIVERSIFICATION WILL HELP WEATHER IMPACT OF COVID-19 MEASURES ON ECONOMIC ACTIVITY
* S&P SAYS CANADA'S PUBLIC FINANCES WERE WELL POSITIONED ENTERING PANDEMIC TO ENABLE STRONG POLICY RESPONSE TO CONTAIN ITS NEGATIVE IMPACT
* S&P SAYS EXPECT CANADIAN ECONOMY TO RECOVER IN 2021, WHICH WILL PARTIALLY COMPENSATE FOR LOSS OF OUTPUT THIS YEAR, AND CONTINUED GDP GROWTH THEREAFTER
* S&P SAYS 'AAA' RATING ON CANADA CONTINUES TO REFLECT STRONG INSTITUTIONS; CREDIBLE MONETARY POLICY; SOUND NET EXTERNAL POSITION; EXPORT-ORIENTED ECONOMY
* S&P SAYS EXPECT INCREASE IN NEW BORROWING IN 2020 TO FINANCE SUPPORT PACKAGES TO PUSH CANADA'S NET GENERAL GOVERNMENT DEBT TO MORE THAN 60% OF GDP IN 2020
* S&P SAYS EXPECT CANADA'S MODERATE CURRENT ACCOUNT DEFICIT TO RISE MARGINALLY IN 2020
* S&P SAYS ALTHOUGH S&P BELIEVES THAT A HOUSING PRICE CORRECTION IS LIKELY IN CANADA, IT PROBABLY WILL BE SHORT-LIVED