J2K: visibility modifiers are no more applicable to local classes

j2k/src/org/jetbrains/kotlin/j2k/Converter.kt

@@ -657,6 +657,10 @@ class Converter private constructor(
         else if (owner is PsiField) {
             modifiers = modifiers.adaptForContainingClassVisibility(owner.containingClass)
         }
+        else if (owner is PsiClass && owner.scope is PsiMethod) {
+            // Local class should not have visibility modifiers
+            modifiers = modifiers.without(modifiers.accessModifier())
+        }
 
         return modifiers
     }

j2k/testData/fileOrElement/nullability/MethodReturnsNullInLocalClass.kt

@@ -1,6 +1,6 @@
 internal class C {
     fun foo(): String {
-        internal class Local {
+        class Local {
             fun foo(): String? {
                 return null
             }