NEW YORK (Reuters) - Moody's Investors Service on Friday said its increased assumptions for losses on mortgage loans could produce downgrades of mortgage insurance companies such as PMI Group Inc.

Moody's late on Thursday put the insurance financial strength ratings of PMI and Triad Guaranty Insurance Corp. units on review for possible downgrade. It affirmed the ratings on subsidiaries of Genworth Financial and Republic Mortgage Insurance Co., but changed their outlooks to negative.

The P1 commercial paper rating of MGIC Investment Corp. is also on review for downgrade, Moody's said.

The rating company a day earlier increased expectations for total losses on risky subprime loans by as much as 85 percent as delinequency rates continued to rise.

(Editing by Theodore d'Afflisio)