We present a novel method for the automatic classification and grading of liver fibrosis based on hepatic hemodynamic changes measured noninvasively from functional MRI (fMRI) scans combined with hypercapnia and hyperoxia. The supervised learning method automatically creates a classification and grading model for liver fibrosis grade from training datasets. It constructs a statistical model of liver fibrosis by evaluating the signal intensity time course and local variance in T2(*)-W fMRI scans acquired during the breathing of air, air-carbon dioxide, and carbogen with a hierarchical multiclass binary-based support vector machine (SVM) classifier. Two experimental studies on 162 slices from 34 mice with the hierarchical multiclass binary-based SVM classifier yield 96.9% separation accuracy between healthy and histological-based fibrosis graded subjects, and an overall accuracy of 75.3% for healthy, fibrotic, and cirrhotic subjects. These results outperform existing image-based methods that can discriminate between healthy and mild-grade fibrosis subjects.