A1means first-rate—the very best. In Lloyd's Register of British and Foreign Shipping, the character of the ship's hull is designated by letters, and that of the anchors, cables, and stores by figures. A1 means hull first-rate, and also anchors, cables, and stores; A2, hull first-rate, but furniture second-rate. Vessels of an inferior character are classified under the letters Æ, E, and I.
Source: Dictionary of Phrase and Fable, E. Cobham Brewer, 1894 More on A1 from Infoplease:
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