Harrah’s, the largest casino chain in the US, may default on its loans in 2011 if operations weaken further, CreditSights said in a report on Monday.

Private equity firms Apollo and TPG bought the chain in one of the five biggest buyouts of all time, by having Harrah’s borrow most of the $28 billion to fund the 2008 LBO.

“In an environment where the economy slowly recovers, we forecast that Harrah’s has adequate liquidity up until 2014,” CreditSights said.