Crossword Genius

Only two letters, but that's fine! (5)

Ross

I believe the answer is:

dandy

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'that's fine' is the definition.
(I've seen this before)

I cannot understand how the rest of the clue works.

Can you help me to learn more?

(Other definitions for dandy that I've seen before include "comic, 1937-2012" , "one of stylish ways" , "Stylish dresser" , "Fine for American" , "Fashionable fellow" .)

I've seen this clue in the Evening Standard.
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