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Papering is the way of telling the quality of a horse. You can instantly paper a stalion if you have level 5 upgrade and it takes 4 foals for the mares to be papered.
This is the best quality to the worst: Gold, Star, blue, red, yellow
papered stud is equal to mares
Stud papered ( A) = (Blue) papered mare
B=red
c=yellow

I hope you understand what I am trying to say. Any vet. players feel free to jump in and make adjustments. :)

Papering only refers to a horses Breeding quality. Your scale is a bit confusing Abbey, at least for me.

Stallions paper Star, A, B, and C, with Star being the best, C being the baseline. Regular foundation stallions are papered C. Exceptionally Perfect Foundation stallions will paper B. Boosting a stallion may bump him up to the next highest paper, depending on his position in his current paper, and the % of boost used. A papers can be found in foundation stallions if an EXPerfect is given a 5% boost. Second generation stallions worth keeping for breeding will typically be papered B or above. The tricky one is Star papers. There seems to be many layers within the Star paper, since that can be 3rd or 4th generation and up.

Mares need to have 3 live foals to be testable for their papers. They can be retested after each foal, as their papers depend on the quality of the foal they produce, which factors in the quality of the stallions they are bred to. Mares will paper Gold, Blue, Red, and Yellow, with Gold being the best. Most first and second generation mares will be red.

Papering geldings is also free, if you're curious what they would paper at. The same scale is used for geldings as is used for stallions. Gelding Advice will geld if they are lower than their sire, but I've heard if they are close enough, even if they are a paper level below, it may leave them intact. It's typically advised, or required, depending on the breeder's rules for their stallions get, to geld a colt who papers lower than his sire. This is to help continue to produce better foals from the line, not worse. It is strongly advised you use the Gelding Advice, Mare Advice (Strict Mare Advice if upgraded), and Showing Aptitude tests with the automatically spay/geld option ON to alter any lower quality horses you test.

Mare papers must be also on their quality as well as foal quality, as occasionally I have had 3 brilliant foals from a mare but she'll still paper lower than her foals indicate

I haven't experimented lately to be honest, but even if it's a matter of "borderline", I still wouldn't trust it. If a mare is so low a red that she can go yellow that easily, she's a yellow IMO.

I don't believe the mare's ability is counted at all - at least, it wasn't originally. If Ammit ever changed that, I don't recall the announcement.

Well, it's kinda counted in the quality of her foal, but I mean as far as the papering process actually looking at her stat.

Not sure that post is still applicable... ... I don't remember the last foundation I had paper yellow. Red seems the norm for my normal foundations and that's only breeding to C level foundation stallions. And do we even still have mares that paper out "failed"? I can't remember the last one of those I saw either.

Ah....I always use the SAT so perhaps that's why.

And it's a good public service announcement for using SAT and Charlie. ;)

I don't paper most foundations, but as an experiment I papered some of my perfect foundations. Some went yellow, some went red, so I even more so don't bother papering foundations! I believe that is because though perfect foundations are the highest C's and yellow, so the mares are pretty easy to push over to red