One of the challenges face a country or firm when deciding to lend a foreign country or firm is how to appraise the creditworthiness of that firm or country.It is experienced and commonly use of credit ratings established by Credit Rating Agencies (Moody's, Standard and Poor's and Pitch) as the yardstick for sovereign creditworthiness appraisal, these will be the secondary or an appeal instrument for appraising creditworthiness of a country. This book established local based factors that will be used as pre-requites factors or benchmark for lending decisions of a country or a firm. The level of economic growth, human development and political instability of a country borrowing found to affect the ability of paying its debt obligations.