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An "A" grade bike is the closest condition to a new bike. Nothing needs replacing and it is almost in prime showroom condition. It can immediately be ridden away. Getting used bikes in such condition are rare. They are generally newer, and are priced higher in the Japanese market. Maximum mileage 10,000KM.
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"B" grade bikes are abundant, and there are plenty to chose from. With light maintenance they can be easily ridden away. Bikes based on "B" grade are the easiest for us to collect.
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"C" grade bikes are generally considered to be well used bikes. Bikes that may have fallen over, or scrapped the ground. Engines in most cases will not start without maintenance. Repairs made on these bikes may eventually cost the same price as a "B" grade bike. In which case, you would be better off buying a "B" grade bike from the very beginning.
