text: **Automotive Debt:**
  
  Despite higher levels incurred for capital expenditures and 
  
  R&D, cash generated from operating activities in the 
  
  automotive division eliminated net automotive debt. Nissan 
  
  held a ¥205.8 billion yen net cash position at the close of 
  
  fiscal 2004 in this division. 
  
  **Rating**
  
  Regarding Nissan’s long-term credit rating, R&I upgraded 
  
  Nissan from A- to A on May 11, 2005. S&P upgraded their 
  
  rating from BBB to BBB+ on July 20, 2004, and Moody’s 
  
  upgraded from Baa3 to Baa1 on January 29, 2004. 
  
  **Investment Policy**
  
  Capital expenditures increased by ¥50.2 billion to ¥477.5 
  
  billion, representing 5.6 percent of net revenue. This 
  
  increase included the Canton plant expansion. R&D 
  
  expenditures increased by ¥43.8 billion to ¥398.1 billion. 
  
  This increase went to fund new technologies and product 
  
  development. Our R&D resources are focused on projects 
  
  that add value to our customers and that will deliver an 
  
  expected return, in both the short and long term. 