What does the color around the objects and characters mean?

In the game StarWars Galaxy of Heroes, the characters and the objects have a border around it. If I'm not mistaken they can be gray, green or blue.

What does those colors mean? Rarity?

Characters

The color indicates what the character's equipment level is. It starts at gray for the initial level I, becomes green at level II (meaning one full set of equipment attached and upgraded to become permanent stats on the character), blue at level IV, purple at level VII, and gold at level XII.

Objects

The color indicates the item's rarity. From common to rare, it goes gray/white → green → blue → purple.