Class and Grade?

Shantara

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What do they mean?

I found the pedigree of the little pony I'm working with and it says "Class - Grade 3" and there seems to be Grade 1-4. What does it mean? I presume Grade 1 is the best and Grade 4 not so much, but what does each grade entail?

ETA - Both his parents are Grade 1, but there is a full brother stallion who is Grade 4...hmmm!
 
Each breed society will have their own way of grading, it won't be like the Connemara one as theirs are based on the Connemara breed standard and their 3yearold grading system
 
Ah, that makes sense as to why he's in Grade 3, he's got blue in one of his eyes (though not wall-eyed!) I think he may have a small amount of white too, I'll have to check that.
 
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