I think that letter grades for first graders are a terrible idea anyway. I wouldn't worry about what her report card says. I would worry about what the teacher tells you in conferences and notes.
Our kid's report card was remarkably average and unremarkable last year--almost all 2's (on a 3 point scale) despite the fact that he was well above grade level in all areas. At the end of the year, with his grades of 2's, they recommended him for a grade skip--the first one any of them had ever recommended, including his teacher who had 28 years of teaching experience.
